Trying desperately to become profitable, the telecommunications equipment maker Alcatel-Lucent is to further cut costs including getting rid of another 1,000 office staff and 5,000 contractors. The latest restructuring is intended to bring the company to break even in operating profit by next year.
Between January and September, the Franco-US firm has seen its turnover – at 12 billion euros – fall five percent. During that period, losses increased by 28 percent to 1.3 billion euros and its shares have fallen in value by more than two thirds.
They continued to drop after the latest moves were announced indicating investor disappointment that Alcatel-Lucent is not going further and selling off some of its divisions although it did say it will get rise of some unspecified “non-core” businesses.