Alcatel-Lucent plants 1,468 job cuts

14th February 2007, Comments 0 comments

PARIS, Feb 14, 2007 (AFP) - US-French telecommunications equipment maker Alcatel-Lucent said on Wednesday it would eliminate 1,468 jobs in France -- 12 percent of its French workforce -- between now and 2008 as part of a restructuring plan.

PARIS, Feb 14, 2007 (AFP) - US-French telecommunications equipment maker Alcatel-Lucent said on Wednesday it would eliminate 1,468 jobs in France -- 12 percent of its French workforce -- between now and 2008 as part of a restructuring plan.

The newly merged group last Friday said its overall job cuts would come to 12,500 or 15.6 percent of its global workforce as it reported a slump in underlying profits.

The company said the cuts in France would affect the Paris area to a slightly greater degree than elsewhere, adding that the plan would also include the re-grouping of certain sites and the reassigment of some tasks.

"These plans flow directly from earlier announcements concerning the merger of Alcatel and Lucent, the acquisition of UMTS activities from Nortel and the recent hardening in market conditions," the caompany said.

The company issued a profit warning in January when it published figures for the fourth quarter showing that sales had fallen by 16.0 percent and that profits had crashed from 566 million euros in the last quarter of 2005 to 21 million euros. Those poor results had surprised analysts.

The French-US group had planned to cut 9,000 jobs but later raised the figure to 12,500.

The cuts in France fall during campaigning for a presidential election in April, in which the role of multinationals, job cuts and employment are sensitive issues.

Copyright AFP

Subject: French news

0 Comments To This Article