Close
  • Latest News
  • Artificial Intelligence
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
Read Down
Sign in
Close
Welcome!Log into your account
Forgot your password?
Read Down
Password recovery
Recover your password
Close
Search
Logo
Logo
  • Latest News
  • Artificial Intelligence
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
More
    Home Blogs First Read
    • Blogs
    • First Read

    Alcatel-Lucent to Cut Another 10,000 Jobs

    By
    Jeff Burt
    -
    October 8, 2013
    Share
    Facebook
    Twitter
    Linkedin

      Embattled networking equipment vendor Alcatel-Lucent will cut another 10,000 jobs as part of its larger restructuring plan to find the stable financial footing that has proved elusive during the seven years since its creation.

      The job cuts—as well as a redistribution of R&D money and other moves—are part of the Shift Plan restructuring initiative announced by Alcatel-Lucent executives in June and is aimed at saving at least $1.36 billion in costs by the end of 2015, company officials told its European works council Oct. 8. The Shift Plan also is designed to bring in another $1.3 billion by selling various assets over the next two years.

      The job cuts will take place over the next two years.

      “We launched The Shift Plan in June to give Alcatel-Lucent an industrially sustainable future,” Michael Combes, who took over as the company’s CEO in April, said in a statement. “The strategic choices we made have been validated by our customers. To carry out this plan we must make difficult decisions and we will make them with open and transparent dialogue with our employees and their representatives. The Shift Plan is about the company regaining control of its destiny.”

      The company, which has about 72,000 employees, was created in 2006 with the merger of Alcatel and Lucent, introducing what executives hoped would be a networking giant that would compete with the likes of Cisco Systems and Ericsson. However, the company has struggled financially from the start—its first profitable year came in 2011, but by 2012, Alcatel-Lucent was losing money again.

      The company has undergone a number of efforts to become profitable, most recently in the summer of 2012, when it cut 5,000 jobs as part of a plan to cut $1.5 billion in costs.

      Part of the Shift Plan calls for Alcatel-Lucent to move away from being a more general telecommunications equipment vendor to focusing on the high-growth areas of IP networking and ultra-broadband access. Among the moves announced Oct. 8 was reallocating R&D investment to next-generation technology, growing that area from 65 percent to 85 percent of all R&D spending. In addition, the company will reduce R&D spending in legacy technologies by 60 percent. The company also will cut administrative, sales and support functions.

      The job cuts will be felt worldwide, with 2,100 jobs being lost in the Americas and 4,100 in Europe, the Middle East and Africa. Alcatel-Lucent will have cut in half the number of worldwide business hubs by the end of 2015, the company said.

      There has been speculation that Nokia, once its sells its handset business to Microsoft, will link up in some fashion with Alcatel-Lucent, though no talks reportedly are under way.

      Jeff Burt
      Jeffrey Burt has been with eWEEK since 2000, covering an array of areas that includes servers, networking, PCs, processors, converged infrastructure, unified communications and the Internet of things.
      Get the Free Newsletter!
      Subscribe to Daily Tech Insider for top news, trends & analysis
      This email address is invalid.
      Get the Free Newsletter!
      Subscribe to Daily Tech Insider for top news, trends & analysis
      This email address is invalid.

      MOST POPULAR ARTICLES

      Latest News

      Zeus Kerravala on Networking: Multicloud, 5G, and...

      James Maguire - December 16, 2022 0
      I spoke with Zeus Kerravala, industry analyst at ZK Research, about the rapid changes in enterprise networking, as tech advances and digital transformation prompt...
      Read more
      Applications

      Datadog President Amit Agarwal on Trends in...

      James Maguire - November 11, 2022 0
      I spoke with Amit Agarwal, President of Datadog, about infrastructure observability, from current trends to key challenges to the future of this rapidly growing...
      Read more
      IT Management

      Intuit’s Nhung Ho on AI for the...

      James Maguire - May 13, 2022 0
      I spoke with Nhung Ho, Vice President of AI at Intuit, about adoption of AI in the small and medium-sized business market, and how...
      Read more
      Applications

      Kyndryl’s Nicolas Sekkaki on Handling AI and...

      James Maguire - November 9, 2022 0
      I spoke with Nicolas Sekkaki, Group Practice Leader for Applications, Data and AI at Kyndryl, about how companies can boost both their AI and...
      Read more
      Cloud

      IGEL CEO Jed Ayres on Edge and...

      James Maguire - June 14, 2022 0
      I spoke with Jed Ayres, CEO of IGEL, about the endpoint sector, and an open source OS for the cloud; we also spoke about...
      Read more
      Logo

      eWeek has the latest technology news and analysis, buying guides, and product reviews for IT professionals and technology buyers. The site’s focus is on innovative solutions and covering in-depth technical content. eWeek stays on the cutting edge of technology news and IT trends through interviews and expert analysis. Gain insight from top innovators and thought leaders in the fields of IT, business, enterprise software, startups, and more.

      Facebook
      Linkedin
      RSS
      Twitter
      Youtube

      Advertisers

      Advertise with TechnologyAdvice on eWeek and our other IT-focused platforms.

      Advertise with Us

      Menu

      • About eWeek
      • Subscribe to our Newsletter
      • Latest News

      Our Brands

      • Privacy Policy
      • Terms
      • About
      • Contact
      • Advertise
      • Sitemap
      • California – Do Not Sell My Information

      Property of TechnologyAdvice.
      © 2022 TechnologyAdvice. All Rights Reserved

      Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.

      ×