Franco-American telecoms gear maker Alcatel-Lucent said it plans to cut 1,000 managerial posts from its global workforce will see 198 positions in France eliminated.
Alcatel-Lucent managers in France told a works council meeting that 450 managerial posts would go in North America and 450 in Europe, of which 198 in France, the CFDT union said in a statement.
The company announced the decision to trim its executive ranks on December 12 as part of a strategic plan aimed at cutting cut costs by 750 million euros by the fourth quarter of 2009, but did not say where the cuts would fall. An Alcatel-Lucent spokeswoman said, "I can confirm the figures for France, but we are not making a statement on the other numbers."
According to the CFDT, 1,602 posts are classed as managerial in France, and while France makes up 10 per cent of Alcatel-Lucent's workforce, it will bear 20 per cent of the job cuts. Alcatel-Lucent, the No. 3 player worldwide in terms of market share, behind Sweden's Ericsson and Finnish-German joint venture Nokia Siemens Networks, employs 77,000 worldwide and 11,000 in France.
The company, formed by the merger of Alcatel and Lucent in 2006, saw its share price fall 70 per cent in 2008 after a string of profit warnings and last week posted a 5.2 billion euro loss for the year amid a record 4.7 billion euros in depreciations. Since June, its share price has dropped more than 70 percent.
Alcatel-Lucent managers in France told a works council meeting that 450 managerial posts would go in North America and 450 in Europe, of which 198 in France, the CFDT union said in a statement.
The company announced the decision to trim its executive ranks on December 12 as part of a strategic plan aimed at cutting cut costs by 750 million euros by the fourth quarter of 2009, but did not say where the cuts would fall. An Alcatel-Lucent spokeswoman said, "I can confirm the figures for France, but we are not making a statement on the other numbers."
According to the CFDT, 1,602 posts are classed as managerial in France, and while France makes up 10 per cent of Alcatel-Lucent's workforce, it will bear 20 per cent of the job cuts. Alcatel-Lucent, the No. 3 player worldwide in terms of market share, behind Sweden's Ericsson and Finnish-German joint venture Nokia Siemens Networks, employs 77,000 worldwide and 11,000 in France.
The company, formed by the merger of Alcatel and Lucent in 2006, saw its share price fall 70 per cent in 2008 after a string of profit warnings and last week posted a 5.2 billion euro loss for the year amid a record 4.7 billion euros in depreciations. Since June, its share price has dropped more than 70 percent.
Article Source:http://infotech.indiatimes.com/News/Alcatel_to_cut_1000_managerial_jobs/articleshow/4117483.cms
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