The latest stage in Alcatel-Lucent’s “Shift Plan” to transform the telecom giant’s fortunes is job cuts; 10,000 are to go worldwide from its 72,000 workforce.
Created from a Franco-US merger in 2006, the company is struggling, now in its fifth straight quarter of losses.
“We are paying for the failed technological choices we made in the past, especially in 3G. In France we are feeling the impact of 900 job losses imposed to save jobs in the long run, and the closure of two sites,” said CEO Philippe Guillemot.
Alcatel-Lucent is looking to slice 15% from its fixed costs. The workforce fears the sacrifices will be for nothing.
“We are shocked, we are angry. Tomorrow we will talk with the workers everywhere in France to organise, I think, demonstrations in France first. I don’t know whether our European colleagues will join another demonstration in Europe. I hope so,” said CFDT Union leader Herve Lasalle.
The company is looking to concentrate on making goods for the high-speed broadband and networking markets, disposing of non-core and other business. Investors like new boss Michel Combes; Alcatel-Lucent’s share price has tripled this year, and rose further on news of the job cuts.