Alcatel-Lucent to cut 10,000 jobs by end of 2015

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The job cuts are part of the mobile manufacturer’s plan to return to profitability by reducing spend on legacy technologies and shifting focus to next generation technologies such as 4G

Alcatel-Lucent is to cut its workforce by 10,000 by the end of 2015 as part of a strategy to restore profitability to the ailing mobile manufacturer.

The French manufacturer will cut 4,100 jobs in Europe, Middle East and Africa, 3,800 in Asia Pacific and 2,100 in the Americas.

A further 900 employees could be moved internally, transferred to partners or redeployed by 2015.

The job cuts are part of the company’s ‘Shift Plan’, which was unveiled in June and is aimed at repositioning itself as a specialist in IP (internet protocol) networking, cloud and ultra-broadband (a technology designed to carry large amounts of data) access.

The plan also aims to reduce fixed costs by €1 billion (£843 million) by 2015 by cutting research and development spend on legacy technology by 60 per cent and cutting administrative, sales and support functions.

The company will also increase R&D spend on next generation technologies including 4G and IP platforms from 65 per cent to 85 per cent.

Alcatel-Lucent CEO Michel Combes said: “To carry out this plan we must make difficult decisions and we will make them with open and transparent dialogue with our employees and their representatives. The Shift Plan is about the company regaining control of its destiny.”

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