AlcaLu to Cut 6% Of Its Global Staff

Alcatel-Lucent has announced to cut 6 percent of its global staff in a bid to retain its operating margin targets for the year. The company has decided to cut 5,000 people of its total of 78,000 staff by the end of next year.

The global telecom equipment vendor intends to restructure its operations where it is facing tough margins, in order to cut costs by $1.5 billion.

The announcement is not surprising, since Alcatel Lucent's second-quarter revenues were far from impressive. It reported second-quarter revenues of $4.3 billion, down 7.1 percent from a year ago but up 10.6 percent from a weak first quarter.

While the company did not specify the number of jobs it will axe in India, industry sources say that the number could be around 500.

For the full story, read AlcaLu to Cut 5,000 Jobs.

Jatinder Singh, Principal Correspondent, Light Reading India