Alcatel, Ciena make cuts
Demand continues to wane in the telecom sector, forcing companies to make the hard decision to let some people go. The latest: Equipment manufacturers Alcatel and Ciena make cuts.
Roughly 10,000 more Alcatel employees will receive their walking papers over the next 15 months. The French telecom gear maker said it is making the additional cuts to reach its previously announced goal of returning to profitability next year.
At the end of next year, Alcatel expects to have 60,000 people on its employee roster. Conversely, at the end of 2000, the company had 113,000.
Alcatel did not provide details as to where the cuts will be made, but said it will further outline its restructuring efforts during a Q3 conference call on Oct. 30.
Earlier this week, Alcatel Optronics, an Alcatel subsidiary, said it plans to cut 1,050 jobs by mid-2003. The news of the cuts followed a warning that the unit expected its third-quarter sales to fall 50 percent sequentially.
Separately, Ciena Corp. said it will reduce its work force by 17 percent, or by 450 employees.
The move will result in as much as $55 million in annualized savings, according to a Ciena statement. The company will take a restructuring charge of between $75 million and $80 million in the fourth quarter.
Affected employees will be paid through Nov. 19, and will be eligible for additional severance packages, including outplacement assistance and training.