To focus on "future growth prospects", as of 1 January 2003 Alcatel is reorganising its four existing divisions — Carrier Networking; Optics; e-Business; and Space and Components — into three divisions focused on market segments covering voice and data communications:
- Fixed communications (where Alcatel claims to be world leader in broadband);
- Mobile communications (where Alcatel says it will leverage its momentum in 2G and 2.5G markets into the 3G space);
- Private communications (which will address markets other than telecoms carriers, such as enterprise, space and large institutions).
Each segment will be addressed by a dedicated business group which will be organised to enhance capabilities in:
- developing end-to-end network solutions optimising and guaranteeing performance and quality of service;
- offering a range of services to reduce operating expenses, based on long-term partnerships,
- designing communication solutions to provide new revenue streams with a broad range of value-added applications.
"The implementation of this new organisation is also an opportunity to better ensure a greater efficiency in the execution of the undergoing restructuring plan. It will reduce costs while positioning the group as a solutions-oriented company, fully market-driven," says CEO Serge Tchuruk.
Alcatel already plans to cut its workforce another 28% from 84,000 at the end of June 2002 to 60,000 by the end of 2003. The on-going process is being undertaken country by country and product line by product line.
Based on current sales trends, Alcatel's revenue would be about 40% in fixed and 30% in both mobile and private communications.