Alcatel-Lucent will shed 12,500 jobs or 16 per cent of staff, more than expected, as a result of its complex transatlantic merger and it sees tough times ahead with another dip in sales in the first quarter.
However, disruptions from Alcatel's acquisition of US telecoms equipment rival Lucent should ease over time and the newly combined business should lift full-year revenues by at least 5 per cent, it predicted today.
The company employs about 260 full-time employees, and 130 contract workers in Dublin.
"We expect that we will resume growth after a challenging first quarter...as short-term uncertainties and distractions from the merger are mitigated," chief executive Patricia Russo said in a conference call with analysts.
Alcatel-Lucent, which issued a profit warning in January, kept its annual dividend unchanged, reassuring those investors who feared the restructuring would put pressure on cash.
The pay-out, the in-line annual results and job cuts lifted the shares more than 3 per cent.