Lucent Plans To Cut 10,000 Jobs
Jan. 24, 2001
MURRAY HILL, N.J. (AP) _ Lucent Technologies plans to reduce its work force by 10,000 jobs as part of an effort to wring $2 billion out of its annual costs.
The planned job cuts, representing about 8 percent of its global work force of about 126,000 people, were announced as the telecommunications equipment maker reported a loss from continuing operations in its first fiscal quarter.
The moves follow a series of earnings disappointments at the company, which was once part of AT&T Corp.
Lucent said it will reduce its work force through layoffs and attrition by July, and employees will be notified between now and March.
``With this announcement, we are outlining a comprehensive set of actions to rebuild the company for long-term, sustainable profitability,'' Lucent chairman and chief executive Henry Schacht said in a statement. ``We are moving swiftly to implement these actions companywide. They will serve as the foundation for putting Lucent back on track.''
The company lost $1.02 billion, or 30 cents per share, from continuing operations in the quarter ended Dec. 31 in contrast to earnings of $1.08 billion, or 33 cents per share, from continuing operations a year ago.
Revenue dropped 26 percent to $5.84 billion for the quarter from $7.9 billion a year ago.
The company also will take a one-time restructuring charge between $1.2 billion and $1.6 billion for write-offs of inventory and facility consolidations.
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