Sep 20, 2002 : Alcatel to Cut 20,000 Jobs
📅 - French telecommunications equipment provider Alcatel said on Friday that it plans to cut approximately 20,000 more jobs in its efforts to return to combat a deteriorating market and return to profitability.
The reductions reportedly include about 10,000 positions the company decided to cut in July but did not officially announce. The new cuts will come in addition to approximately 30,000 jobs Alcatel already planned to cut in 2001 and 2002.
Alcatel cut its second-half sales forecast this week, now saying that it expects a 10 percent drop in sales from the first half of the year, after previously forecasting steady sales.
The company's third-quarter sales are expected to drop 15 percent versus the second quarter, said Alcatel, predicting that the losses in profit would be cushioned by cost cuts.
Alcatel says it plans to cut its global staff numbers to 60,000 by the end of 2003 in a restructuring that is expected to cost the company $493 million over the next three quarters.
At the end of 2000, Alcatel had 113,000 employees and was already in the process of cutting 30,000 jobs. The company had cut its staff to 83,000 by the end of June.
Alcatel is among a number of telecom equipment makers, including Lucent Technologies, Nortel Networks and Ericsson, that have recently announced massive job cuts in reaction to depressed markets.
The reductions reportedly include about 10,000 positions the company decided to cut in July but did not officially announce. The new cuts will come in addition to approximately 30,000 jobs Alcatel already planned to cut in 2001 and 2002.
Alcatel cut its second-half sales forecast this week, now saying that it expects a 10 percent drop in sales from the first half of the year, after previously forecasting steady sales.
The company's third-quarter sales are expected to drop 15 percent versus the second quarter, said Alcatel, predicting that the losses in profit would be cushioned by cost cuts.
Alcatel says it plans to cut its global staff numbers to 60,000 by the end of 2003 in a restructuring that is expected to cost the company $493 million over the next three quarters.
At the end of 2000, Alcatel had 113,000 employees and was already in the process of cutting 30,000 jobs. The company had cut its staff to 83,000 by the end of June.
Alcatel is among a number of telecom equipment makers, including Lucent Technologies, Nortel Networks and Ericsson, that have recently announced massive job cuts in reaction to depressed markets.
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