The struggling network equipment maker will cut its workforce by about 14 percent in an effort to trim $1 billion in costs, European newspapers report. October 7, 2013 8:05 PM PDT Alcatel-Lucent CEO Michel Combes. (Credit: Eric Piermont /FP/Getty Images) Alcatel-Lucent plans to reduce its workforce by 10,000 jobs, or about 14 percent, in a cost-cutting effort to turn around the struggling network equipment maker, according to reports by European newspapers Monday. The company, which counted 72,000 posts among its global workforce in December, plans to cut 15,000 positions while creating 5,000 new jobs, according to Les Echos and Le Figaro. The cuts are reportedly part of an effort to trim 1 billion euros ($1.36 billion) in expenditures unveiled by Alcatel-Lucent CEO Michel Combes, who took over the helm of the Franco-American network equipment maker in April. Related stories Telefónica to give Europe's 4G a boost Alcatel-Lucent CEO Ben Verwaayen stepping down Jury sides with Apple, LG in Alcatel-Lucent patent suit CNET has contacted Alcatel-Lucent for comment and will update this report when we learn more. Combes took over for Ben Verwaayen, who resigned in February after four years at the helm, trying to turn around the fortunes of the Paris-based telecommunications equipment maker. However, the company, which was formed by a merger of the two former rivals in 2006, has struggled to compete with the likes of Sweden's Ericsson and Chinese manufacturers such as Huawei. For 2012, the company recorded a net loss of 1.2 billion euros, its seventh consecutive year of negative cash flow.
The struggling network equipment maker will cut its workforce by about 14 percent in an effort to trim $1 billion in costs, European newspapers report.
Alcatel-Lucent CEO Michel Combes.
(Credit: Eric Piermont /FP/Getty Images)
Alcatel-Lucent plans to reduce its workforce by 10,000 jobs, or about 14 percent, in a cost-cutting effort to turn around the struggling network equipment maker, according to reports by European newspapers Monday.
The company, which counted 72,000 posts among its global workforce in December, plans to cut 15,000 positions while creating 5,000 new jobs, according to Les Echos and Le Figaro. The cuts are reportedly part of an effort to trim 1 billion euros ($1.36 billion) in expenditures unveiled by Alcatel-Lucent CEO Michel Combes, who took over the helm of the Franco-American network equipment maker in April.
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- Telefónica to give Europe's 4G a boost
- Alcatel-Lucent CEO Ben Verwaayen stepping down
- Jury sides with Apple, LG in Alcatel-Lucent patent suit
CNET has contacted Alcatel-Lucent for comment and will update this report when we learn more.
Combes took over for Ben Verwaayen, who resigned in February after four years at the helm, trying to turn around the fortunes of the Paris-based telecommunications equipment maker. However, the company, which was formed by a merger of the two former rivals in 2006, has struggled to compete with the likes of Sweden's Ericsson and Chinese manufacturers such as Huawei.
For 2012, the company recorded a net loss of 1.2 billion euros, its seventh consecutive year of negative cash flow.
