Lucent to cut 10,000 staff
Lucent Technologies has announced a further 10,000 job cuts as part of a "more aggressive" restructuring plan. It hopes the changes will take its quarterly earnings per share (EPS) break-even revenue level to USD2.5bn.
CEO Patricia Russo said, "We intend to return to profitability in 2003 and we are taking more aggressive restructuring actions to bring our break-even down further."
Lucent still expects a 20–25% sequential decline from Q3 revenues of USD3bn, consistent with its previous forecast.
Lucent’s CFO Frank D’Amelio said, "The resulting charges will significantly increase the previously forecast pro-forma loss of USD0.45 per share for Q4. Other restructuring charges will total USD1bn".
The company will also record a charge to equity of about USD3bn due to a decline in pension assets in its management pension plan, primarily as a result of declines in the equity markets.
Lucent expects its staff headcount to fall to about 35,000 by the end of 2003. This represents a reduction of an additional 10,000 employees from the previously anticipated level of 45,000 at the end of 2002.