Alcatel-Lucent to cut 10,000 jobs by 2015, 3,800 in Asia Pacific

Alcatel-Lucent will cut 10,000 jobs worldwide by the end of 2015 of which 3,800 will be from Asia Pacific as per The Shift Plan.

There will be a reduction of 4,100 positions in Europe, Middle East and Africa and 2,100 in Americas. By the end of 2015, Alcatel-Lucent will halve the number of its business hubs globally.

Alcatel-Lucent is today informing its European works council (ECID) of the actions planned as part of The Shift Plan announced on June 19 by its new chief executive officer, Michel Combes.

The Shift Plan also aims to restore profitability to the company, being based on a transformation of Alcatel-Lucent’s R&D activities for greater efficiency and a reallocation of resources to focus on future technologies while making a significant reduction of fixed costs. As part of the Shift Plan, the company will make key social actions in order to restore its competitiveness in the marketplace.

As part of The Shift Plan, Alcatel-Lucent has committed to achieve fixed cost savings of Euro 1 billion or more than 15 percent of fixed costs by the end of 2015. This will be achieved by: 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 to bring SG&A costs in line with industry standards.

Michel Combes, CEO, Alcatel-Lucent said, “We launched The Shift Plan in June to give Alcatel-Lucent an industrially sustainable future. The strategic choices we made have been validated by our customers. 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.”

In France, the company intends to reduce approximately 900 positions in 2014 primarily in support, administrative and sales functions as well as recruiting 200 engineers and technicians with new technical competencies.

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