Alcatel-Lucent is preparing to slash 10,000 jobs by end 2015, as part of an aggressive cost cutting strategy first announced in June.
The infrastructure vendor is seeking savings of €1 billion ($1.36 billion) by end 2015 through staff layoffs, and by reducing investment in R&D for legacy technologies by 60%. The majority of employees that will go are in the firm’s admin, sales, and support, with 4,100 in EMEA, 3,800 in Asia Pacific, and 2,100 in the Americas. The vendor also plans to halve its global business hubs in the next two years.
“We launched the Shift Plan in June to give Alcatel-Lucent an industrially sustainable future,” chief executive, Michael Coombes, explains. “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.”
It isn’t all layoffs, though. Alcatel-Lucent plans to recruit an additional 200 engineers and technicians to aid its new focus on emerging technologies, including 4G, IP platforms, and small cells. The vendor will also maintain development of optical technology.
Alcatel-Lucent was recently linked with Nokia, with reports the Finnish vendor is considering a partnership or merger.