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Alcatel cuts another 2,500 U.S. jobs and closes plants

Mon, 07/09/2001 - 8:00pm
Anne Kerven

Alcatel is cutting 2,500 jobs and closing more plants in the United States as part of its cost-management plan, the company says in a terse announcement.

The company will cut 800 jobs in its Plano, Texas, headquarters; 700 in Raleigh, N.C.; 100 in Chantilly, Va.; and the rest across the United States, says spokesman Brian Murphy. The cuts total 4,700 since January, and leave 12,500 workers nationwide.

Murphy says Alcatel will move work from its facility in Raleigh to a one that straddles the Arizona/Mexico border, and to an as-yet-undetermined contract manufacturer. The Raleigh facility will stay open for R&D manufacturing, building prototypes and first releases for Alcatel's access business.

Murphy says he doesn't know how many facilities are left in the country, and the company could consider more layoffs if needed. As to talk Alcatel is pulling back from its highly touted move into the American market, "Nope, not at all," Murphy says. "It's an adjustment in the business because of the reduction of equipment spending in telecom."

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