Alcatel-Lucent to slash 5,000 jobs

Telecom Lead Europe: Mobile equipment major Alcatel-Lucent
has decided to slash 5,000 jobs.

 

The telecom equipment maker will restructure unprofitable
markets as part of a program to lower costs by 1.25 billion euros ($1.52
billion) by the end of next year.

 

Alcatel-Lucent will miss its 2012 profit margin target
and pre-announced an adjusted operating loss of 40 million euros on sales above
3.5 billion in the second quarter.

 

The job cuts will affect 6.4 percent of Alcatel-Lucent’s
78,000 employees. The group will also seek to get rid of unprofitable services
contracts in which it manages networks for operators, squeeze more money out of
its patent portfolio, and exit or restructure in countries where it is weak.

 

Alcatel-Lucent also gave a new annual profit target of
posting a second-half adjusted operating margin better than the first half when
it stood at minus 3.7 percent. It confirmed its prior target of aiming for a
strong positive net cash position at the end of 2012.

 

Recently, Nokia and RIM announced their plans to cut
jobs.

 

Nokia to cut 10,000 jobs by 2013, to close plants in Germany,
Canada and Finland

 

obile phone major Nokia is planning to reduce up to
10,000 jobs globally by the end of 2013.

 

The company did not reveal county-specific job details.

 

Last year, Nokia had announced plans to cut around 3,000
jobs. Nokia Siemens Networks is also in the process of slashing 17,000 jobs
worldwide.

 

RIM to slash 5,000 jobs

 

Research In Motion (RIM), maker of Blackberry
smartphones, is slashing 5,000 jobs across its global operations before the end
of the year. The company revealed that its business is crumbling faster than
thought.

 

[email protected]