Alcatel-Lucent to cut 10,000 jobs by 2015

Nieuws Algemeen Wereld 8 OCT 2013
Alcatel-Lucent to cut 10,000 jobs by 2015
Alcatel-Lucent announced plans to shed 10,000 jobs by the end of 2015, as part of efforts to narrow the company's focus and return to profitability. The network equipment maker said the job cuts are part of its Shift Plan announced in July and aim to reduce fixed costs by EUR 1 billion or more than 15 percent by the end of 2015. 

The cost savings will come from reallocating R&D investment to next-generation technologies, which should represent 85 percent of R&D spend in 2015, as opposed to 65 percent today; reducing R&D spend in legacy technologies by 60 percent; and reducing administrative, sales and support functions. 

The lay-offs will include 4,100 positions in Europe, the Middle East and Africa, 3,800 in Asia Pacific and 2,100 in Americas. By the end of 2015, Alcatel-Lucent will halve the number of its business hubs globally. 

In France the company will concentrate its service provider business at two sites: Villarceaux, south of Paris, which will become Alcatel-Lucent’s primary R&D centre in Europe, and Lannion, which will specialize in ultra-broadband mobile access and subscriber data management technologies. Overall, R&D in France will focus on future technologies such as 4G and IP platforms, in particular with the creation of a new small cells competency centre. In addition, France will keep its focus on optics and strengthen it in mathematics, with the hiring of another 200 engineers and technicians. 

Around 900 positions in France will be eliminated in 2014, primarily in support, administrative and sales functions. Another 900 employees may also be redeployed or moved to partners in 2015. The company's European works council has been informed of the proposed changes. 

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