Alcatel-Lucent’s top bosses are quitting as it announced a sixth straight quarterly loss. Chairman Serge Tchuruk – architect of the merger between France’s Alcatel and US firm Lucent – will leave in two months time. Chief executive Patricia Russo will step down by year’s end with a payoff of as much as six million euros.
They have been forced out as the world’s No. 1 provider of fixed-line telecoms networks lowered profit expectations yet again. It continues to lose market share to its Chinese rivals as well as Ericsson and Nortel.
Analysts blamed culture clashes and weak management plus dire market conditions for Alcatel-Lucent’s problems. It has lost over half of its market value since starting to operate as a combined group in December 2006. The shares fell 55% last year and 23% this year up to the resignation announcements.
Market reaction was positive, with Alcatel-Lucent’s shares rising on hopes that a new team could turn the group around and improve its fortunes.
The company, which has issued repeated profit warnings and carried out several restructurings including cutting 6,700 jobs, suffered a net loss last year of 3.5 billion euros.