French-US telecom-equipment maker Alcatel-Lucent is to cut 10,0000 jobs worldwide to reduce fixed costs by 15 percent in two years, the company announced on Tuesday.
The company has lurched from crisis to false dawn to crisis since it was formed of a merger, and is restructuring and refocusing its activities to staunch losses.
The new ‘Shift’ plan is aimed at transforming research and development “for greater efficiency and a reallocation of resources to focus on future technologies while making a significant reduction of fixed costs,” a statement said.
The company said that 4,100 jobs would be cut in Europe, the Middle East and Africa by 2015, 3,800 in the Asia Pacific region, and 2,100 in North and South America.
“By the end of 2015, Alcatel-Lucent will halve the number of its business hubs globally,” the statement said.
Chief executive officer Michel Combes said: “We launched The Shift Plan in June to give Alcatel-Lucent an industrially sustainable future.
“To carry out this plan we must make difficult decisions … The Shift Plan is about the company regaining control of its destiny.”
Alcatel-Lucent said it would shed about 900 jobs in France next year. Spending on research and development for new technologies would be raised to 85 percent of the R&D budget from the current level of 65 percent.
Alcatel-Lucent posted a loss of 885 million euros ($1.2 billion) in the six months to June, compared with a loss of 396 million euros for the same period in 2012.