Lucent Technologies announced today it will cut 10,000 staff by mid-year, and shed another 6,000 employees by year-end, as part of an attempt to reduce costs by $2 billion.
Lucent’s 700-strong Irish workforce will also face job cuts in the region of 6 per cent.
The company said a $150 million (euro 155.8 million) investment in Blanchardstown, Co Dublin, which will lead to the creation of 500 jobs over three years, is expected to go ahead as planned.
Ireland is part of Lucent’s Europe, Middle East and Africa unit which employs 17,000 people. A spokeswoman at Lucent’s media relations headquarters in New Jersey, said an estimated 1,000 staff cuts are expected from this sector
Announcing losses of $1.02 billion dollars for the first fiscal quarter, ending December 31st 2001, Lucent said it intended to implement a seven-point restructuring plan, in a bid to improve working capital by some £2 billion dollars.
"The majority of affected employees (will be) notified between now and February 15th and virtually all by early March," Lucent said in a statement.
"We are outlining a comprehensive set of actions to rebuild the company for longterm, sustainable profitability," said Lucent Technologies chairman Mr Henry Schacht. "We are moving swiftly to implement these actions company-wide. They will serve as the foundation for putting Lucent back on track."
Lucent also reported a loss per share of 30 cents, compared with pro forma earnings from continuing operations of $1.08 billion dollars, or diluted earnings per share of 33 cents a year ago.
Its restructuring plan does not include Agere, the company said. The spokeswoman said the job cuts would be net and from a global workforce of 123,00, were relatively minimal. She added that Lucent was continuing to recruit for high skill positions.
AFP