Alcatel Lucent SA (ALU) Is Cutting 10,000 Employees In 2015
Alcatel Lucent SA (NYSE:ALU) is going to cut 10,000 workers by 2015. Alcatel Lucent’s new CEO said that this is part of a restructuring effort under the Shift Plan. Under this plan, the company has a goal of saving 1 billion Euros in costs and to refocus their operations on next-generation IP networking, cloud, and ultra-broadband access.
Of the 10,000 jobs that will be cut, 2,100 will come from North America. At the end of last year, Alcatel Lucent SA (EPA:ALU) was employing 72,344 workers across the world and 16,507 are based in North America.
These employee cuts affect almost 14% of the company’s worldwide workforce, which will affect mostly sales, support, and administrative areas. IT positions that are connected to legacy technologies like 2G and 3G wireless technology are also affected by the layoffs.
Alcatel Lucent SA (EPA:ALU) is going to reduce their R&D spending on legacy technologies by around 60%. Meanwhile, investments in next generation technologies will be increased to 85% of their R&D budget, which is up from the current 65%.
“We launched The Shift Plan in June to give Alcatel-Lucent an industrially sustainable future,” stated Alcatel Lucent SA CEO Michel Combes. “To carry out this plan we must make difficult decisions and we will make them with open and transparent dialogue with our employees and their representatives. The Shift Plan is about the company regaining control of its destiny.”