Alcatel is to cut 12,000 jobs in profits drive.

Alcatel is to cut 12,000 jobs in profits drive.
Richard Wilson
French telecoms group Alcatel is the latest global electronics manufacturer to cut staff numbers in order to boost profitability. The firm announced in Paris yesterday that 12,000 jobs will be lost from its worldwide businesses over the next two years.
The cuts, which represent 10 per cent of Alcatel’s workforce, are a direct response to lower than expected profits this year.
This surprise news comes just a week after the telecoms terminal and network manufacturer announced its plan to pay $2bn for US data networking company Xylan.
A significant proportion of the staff cuts will come in Alcatel’s North American businesses.
According to Alcatel chairman Serge Tchuruk, the job cuts will allow the company to maintain profitability. It will, he said, boost operating profits from their current 4 percent to 7 percent, assuming everything goes to plan.
Other options being considered by the company include the possible sale of its 44 per cent share in Framatome, the state-controlled nuclear reactor maker and industrial group.

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