Alcatel-Lucent refocuses to survive

Now Reading:

Alcatel-Lucent refocuses to survive

Text size Aa Aa

Trying to reverse years of losses, Alcatel-Lucent has unveiled another survival plan.

The telecom firm said it will focus on specialised networking equipment for high-growth areas like Internet Protocol and high-speed broadband for fixed-lines and mobile phones.

New chief executive Michel Combes said the company will also slim down further with one billion euros in cost cuts by 2015.

He plans over one billion euros of unspecified asset sales and two billion euros in debt re-financing.

That to be followed by a further two billion in debt reduction; that could include issuing new shares.

Combes, who used to run Vodafone’s European businesses, is the third CEO to try to turn Alcatel-Lucent around. He said it needs to regain competitiveness.

The company has not posted regular profits or generated cash since it was formed in a merger in 2006.