Telecom equipment giant Alcatel-Lucent said on Dec. 12 it planned to cut 1,000 management posts and reduce its sub-contractors by 5,000 in an effort to save 750 million euros (US$ 1 billion).
Alcatel-Lucent said it hoped to realize the savings by the fourth quarter next year, with production costs cut accordingly by a third, and research and development cut by two thirds.
Previous restructuring plans included 16,500 job losses worldwide by the end of 2009 after the company chalked up a series of heavy losses after its formation in 2006.
For 2009, Alcatel-Lucent said it expected the telecoms market to shrink by between 8% and 12% but that it should be be able to hold onto its market share, with operating earnings "in balance."
Copyright Agence France-Presse, 2008