Government seeks block on Alca-Lu layoffs
France’s government is unlikely to succeed in a bid to stop Alcatel-Lucent laying off domestic staff in a round of job cuts that will see 10,000 employees go by end 2015.
The government responded immediately to Alca-Lu’s plan to cut 900 staff in its home market as part of a round of layoffs the firm hopes will help it slash €1 billion from its costs in the next two years.
However, experts told Bloomberg the government is unlikely to succeed in blocking the plan, noting that previous attempts to intervene in similar job cuts by French headquartered companies have merely delayed the inevitable.
The 900 staff due to depart in France form part of 4,100 job cuts Alca-Lu plans in EMEA over the next two years. The firm also plans to reduce the amount it invests in R&D of legacy technologies, while increasing investment in development of 4G, IP, and small cells.