After being subjected to catcalls and boos at a recent investor conference in Paris in late May, it's no surprise that beleagured Alcatel-Lucent CEO Pat Russo has decided to step down from her post by year-end. In addition, Chairman Serge Tchuruk will step down Oct. 1.
Analysts and investors have been calling for Russo's removal for more than a year. The company today reported a second quarter net loss of $1.73 billion (see related story). The company has been plagued with problems since the merger of Paris-based Alcatel and Murray Hill, N.J.-based Lucent in 2006, during this time the company has had six straight quarter of losses and its market capitalization has been cut in half.
Analysts were circumspect about Russo's announced departure. Most believe the company needs new management to help it compete in an increasingly tough market. Alcatel Lucent has faced increasing competition from players such as Ericsson and low-cost vendors such as Hauwei.
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