Lucent, Alcatel to cut 9,000 jobs after merger

11th July 2006, Comments 0 comments

NEW YORK, July 10, 2006 (AFP) - Telecom equipment makers Lucent of the United States and Alcatel of France said Monday their merger would result in the loss of about 9,000 jobs.

NEW YORK, July 10, 2006 (AFP) - Telecom equipment makers Lucent of the United States and Alcatel of France said Monday their merger would result in the loss of about 9,000 jobs.

The companies said in a statement they "are on track to complete their merger transaction by the end of calendar year 2006," and had "achieved a number of significant milestones, including satisfying some regulatory conditions to the proposed merger."

The statement confirmed earlier suggestions that the deal would lead to workforce reductions.

"We have collectively performed further analyses of each business activity and have identified significant cost synergies from several areas across the businesses, including a reduction of the combined worldwide workforce by approximately 9,000 people," said Janet Davidson, Lucent Technologies integration team leader.

The companies announced in April that the French firm would acquire Lucent to form a global giant worth about 33.0 billion dollars (EUR 27.5 billion).

Alcatel is about twice as big as Lucent. The agreement creates the second-biggest telecom technology group in the world, but it is only one quarter the size of the biggest US group Cisco Systems, which is capitalized at about 133.0 billion dollars.

"This merger will create a world-class team that will deliver the best of both companies to customers around the world, and will create enhanced value for shareholders," said Patricia Russo, chairman and chief executive of Lucent who will become CEO of the combined company.

"To that end, we are mapping each company's individual strengths to the changing market dynamics reshaping our industry and adopting best practices across the business of the combined company," Russo added.

Copyright AFP

Subject: French News

0 Comments To This Article