Alcatel-Lucent job cuts climb to 12,500
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Reporting its first quarterly earnings as a merged company today, Alcatel-Lucent announced an increase in the number of jobs it intends to cut over the next three years from 9,000 to 12,500.
Some labor unions in France have called for a strike next week to protest the cuts, according to media reports.
The company reported a loss of 618 million euros, or about $803 million, for the fourth quarter of 2006. In a statement released by Alcatel-Lucent today, chief executive officer Pat Russo called the results “clearly disappointing.”
Alcatel expects to yeild 1.7 billion euros, or about $2.2 billion, in savings within three years, realizing at least a third of that this year. About 55% of the savings will come from the headcount reduction, and 45% will come from product and process synergies.
Attaining those savings, however, will cost the company about 1.6 billion euros, or about $2.1 billion, in cash. More than half of that will be spent this year.
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