Telecom equipment maker, Alcatel-Lucent has reported losses in the previous five quarters and hopes to save $1.4 billion through costs cuts by 2015. Shares in Alcatel-Lucent rose 2% following the news.
The cuts, due by 2015, represent about 14 percent of the workforce worldwide, based on the 72,000 employees the Paris-based company had as of December. About 4,100 jobs will be reduced in Europe, Middle East and Africa, 3,800 in Asia and 2,100 in the Americas, Alcatel-Lucent said today. The company will close sites in Toulouse and Rennes, France.
Alcatel Lucent will cut roles in older technology sectors, including 2G and 3G wireless networking equipment — hitting those in Germany and France the hardest. France will focus R&D activities on future technologies such as 4G and IP platforms, ultra-broadband mobile access and subscriber data management (SDM) technologies. However, 900 French positions will be removed in support, administrative and sales functions next year — although this may include the transfer or deployment of staff to company partners.
“The Shift Plan is about the company regaining control of its destiny,” Chief Executive Michel Combes said in a statement.
DAlcatel-Lucent said it will advance industry adoption of Network Functions Virtualization (NFV) – the consolidation of carrier network functions across distributed industry standard servers – by creating the CloudBand Ecosystem Program, the first open community of service providers, developers and vendors adopting NFV. NFV technology supports the flexible network infrastructure needed to move complex applications and services to the cloud. It enables service providers to bring the agility, efficiency and economics of the cloud to their own networks and business operations, allowing them to offer cloud services with the performance and reliability that consumers and enterprises expect.
Photo Credit: Alcatel-Lucent