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Troubled telecommunications equipment giant Alcatel-Lucent is to cut a further 4,000 jobs, following a third consecutive quarterly loss.

 The latest cuts will bring the total number of post-merger job losses to 16,500 following the announcement in February that 12,500 jobs were to be culled. Cutting the extra 4,000 jobs, which constitutes roughly 5% of the overall workforce, will save the company €400 million, in addition to an estimated €1.7 billion saving from the previously announced cuts.

Alcatel-Lucent posted a net loss of €258 million and a year-on-year revenue drop of 11% for the fiscal quarter ended 30 September, 2007. The company claims this is due in part to “difficult” market conditions because of intensified competition and a slowdown of spending in North America.

The Paris headquartered company also announced a shake-up among senior management – chiefly the departure of its current CFO, Jean-Pascal Beaufret, who is due to be replaced by the head of the company’s enterprise division, Hubert De Pesquidoux. Christian Reinaudo, head of the Europe and North region, will also be leaving the company to “pursue other opportunities”.

In addition, CEO Patricia Russo has established a seven-member management committee reporting directly to her, in a bid to improve the “overall operation of the company”, and in order to create “a more focused and efficient operating model”, the company said in an announcement.

Lucent shareholders gave the go-ahead to the US networking equipment company’s acquisition by French rival Alcatel in September 2006, following a protracted period of negotiations. The world’s largest telecoms equipment maker is still struggling to find its feet in the highly competitive telecoms landscape.

Further reading

Alcatel-Lucent to cut 12,500 jobs

Alcatel-Lucent hones enterprise focus

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