Alcatel-Lucent reported third-quarter earnings that included a $373 million net loss, but otherwise were largely anti-climatic. The real news is the company said it will cut 4000 more jobs, on top of the 12,500 jobs it eliminated earlier this year. Also, chief financial officer Jean-Pascal Beaufret will be leaving the company in the coming weeks, and Europe regional chief Christian Reinaudo, who has been with Alcatel for almost 30 years, is departing as well.
Pressed to come up with a more aggressive comeback program, Alcatel-Lucent CEO Patricia Russo delivered some of the same, though the job cuts are expected to save about $578 million. What's new is that Russo also said the company will focus more on its higher-margin businesses, and she'll have a seven-member management committee guiding the ongoing restructuring. Alca-Lu's earnings complete a triumvirate of third-quarter earnings disasters at the major telecom equipment vendors, as Ericsson and Nokia Siemens also posted big losses.
For more:
- The International Herald Tribune has the story [1]
- Light Reading tells more [2] about the Alca-Lu Seven
Related articles:
- Alcatel-Lucent [3] last month revised its financial outlook for the yearÂ
Links:
[1] http://www.iht.com/articles/ap/2007/10/31/business/EU-FIN-EARNS-France-Alcatel-Lucent.php
[2] http://www.lightreading.com/document.asp?doc_id=137797&f_src=lightreading_section_5
[3] http://www.fiercetelecom.com/story/alca-lu-trims-outlook-1-25-billion/2007-09-13