Embattled telecom equipment maker Alcatel-Lucent is once again cutting its forces in order to combat losses and a weakened sales outlook.
The company today announced it will cut another 5 percent of its workforce, or about 4,000 jobs, to save $577 million by the end of 2009. In addition, CFO Jean-Pascal Beaufret announced he is resigning and will be leaving in the coming weeks to "pursue other opportunities." Beaufret will be replaced by Hubert de Pesquidoux, who oversees the company's enterprise business.
The news today is part of the firm's turnaround plan. The company has said it will eliminated 5,000 jobs this year and that it will eliminate about 20 percent of its workforce, or about 16,500 jobs, in total. CEO Patricia Russo blamed the firm's problems on the collapse of the U.S. housing market, which has hurt demand for broadband gear, and a drop in wireless orders. Alcatel-Lucent has struggled in the wireless market recently as competitors such as Ericsson and Chinese vendors such as ZTE have become more aggressive.
For more on Alcatel's quarter:
- see this MarketWatch report for more on Alcatel-Lucent's cuts.