Alcatel-Lucent to slash jobs in bid to reverse fortunes

(Yahoo Finance)

French phone manufacturer Alcatel-Lucent has confirmed it is to halve its business hubs worldwide, axing around 10,000 jobs by the end of 2015.

The extreme cost-cutting plan, aimed at reversing the fortunes of the telecoms equipment maker, which has seen years of losses, will see 4,100 roles cut in Europe and 3,800 in Asia Pacific.

The company's June "Shift" plan has already seen it commit to saving €1bn by 2015 - 15 per cent of its fixed costs - and focus on high-speed broadband and networking products.

The 72,000-strong company has seen net losses for the past five quarters, with a 2012 figure of €1.2bn, which was, in part, owing to a restructuring plan to lay-off 5,000 workers.

This morning's statement also flagged up the company's focusing on new technologies:

In France the industrial transformation will focus R&D activities on future technologies such as 4G and IP platforms, in particular with the creation of a new small cells competency center, an area of particular interest for the company. In terms of research, France will keep its focus on optics and strengthen it in mathematics, at the heart of next-generation network software.

Investors have welcomed the plans, with shares up almost 2 per cent.