Franco-American telecoms gear maker Alcatel-Lucent said it plans to cut 1,000 managerial posts from its global workforce will see 198 positions in France eliminated.
Alcatel-Lucent managers in France told a works council meeting on Wednesday that 450 managerial posts would go in North America and 450 in Europe, of which 198 in France, the CFDT union said in a statement.
The company announced the decision to trim its executive ranks on Dec. 12 as part of a strategic plan aimed at cutting cut costs by 750 million euros by the fourth quarter of 2009, but did not say where the cuts would fall.
An Alcatel-Lucent spokeswoman said: "I can confirm the figures for France, but we are not making a statement on the other numbers."
According to the CFDT, 1,602 posts are classed as managerial in France, and while France makes up 10 percent of Alcatel-Lucent's workforce, it will bear 20 percent of the job cuts.
Alcatel-Lucent, the No. 3 player worldwide in terms of market share, behind Sweden's Ericsson (ERICb.ST) and Finnish-German joint venture Nokia Siemens Networks [NSN.UL], employs 77,000 worldwide and 11,000 in France.
The company, formed by the merger of Alcatel and Lucent in 2006, saw its share price fall 70 percent in 2008 after a string of profit warnings and last week posted a 5.2 billion euro loss for the year amid a record 4.7 billion euros in depreciations.
Since June, its share price has dropped more than 70 per cent.
Agencies
Showing posts with label Ericsson. Show all posts
Showing posts with label Ericsson. Show all posts
Sunday, February 15, 2009
Friday, January 23, 2009
Due to drop in profits, Ericsson to cut 5,000 jobs
Wireless equipment maker LM Ericsson on Wednesday said profits dropped 31 per cent in the fourth quarter, citing restructuring charges and weaker handset sales, and said it would slash 5,000 jobs.
Ericsson said net profit fell to 3.9 billion kronor ($465 million) from 5.6 billion a year earlier.
It reported ``a dramatic drop'' in the contribution from its handset unit, Sony Ericsson. The joint venture with Japan's Sony last week said it had swung to a fourth-quarter loss of euro187 million ($243 million).
For the full year 2008, it posted a profit of 11.3 billion kronor, nearly half the 21.8 billion kronor reported for 2007.
Boosted by a weakening krona, Ericsson's sales in the fourth quarter rose 23 per cent to 67 billion kronor, from 54.5 billion kronor a year earlier.
The share soared nearly 11 per cent to 62 kronor in Stockholm stock market opening.
The world's leading maker of mobile broadband infrastructure said it released the fourth-quarter results a week ahead of schedule because it believed they exceeded market expectations.
In a statement, Chief Executive Carl-Henric Svanberg described his company's performance in 2008 as ``solid,'' pointing out the sales and the operating margins, excluding Sony Ericsson. He warned however that the financial downturn makes it ``difficult to more precisely predict to what extent consumer telecom spending will be affected, and how operators will act.''
The company said it needs to widen its savings program as the global financial crisis continues to pressure the industry, tough competition and the technical development. That would mean cutting 5,000 jobs, or more than 6 per cent of its 79,000-strong work force, Ericsson said.
The Stockholm-based company said it expected restructuring charges of 6 billion-7 billion kronor, yielding annual savings of around 10 billion kronor by the second half of the year.
In a webcast news conference with analysts and journalists, Svanberg said ``we're doing this of course because of the uncertainty in the market.''
For 2009, he said it will be a priority for the company to stay close to its customers to understand their behavior and needs, adding his company is also preparing for tougher times to be able to defend its margins and extend its leadership.
Agencies
Ericsson said net profit fell to 3.9 billion kronor ($465 million) from 5.6 billion a year earlier.
It reported ``a dramatic drop'' in the contribution from its handset unit, Sony Ericsson. The joint venture with Japan's Sony last week said it had swung to a fourth-quarter loss of euro187 million ($243 million).
For the full year 2008, it posted a profit of 11.3 billion kronor, nearly half the 21.8 billion kronor reported for 2007.
Boosted by a weakening krona, Ericsson's sales in the fourth quarter rose 23 per cent to 67 billion kronor, from 54.5 billion kronor a year earlier.
The share soared nearly 11 per cent to 62 kronor in Stockholm stock market opening.
The world's leading maker of mobile broadband infrastructure said it released the fourth-quarter results a week ahead of schedule because it believed they exceeded market expectations.
In a statement, Chief Executive Carl-Henric Svanberg described his company's performance in 2008 as ``solid,'' pointing out the sales and the operating margins, excluding Sony Ericsson. He warned however that the financial downturn makes it ``difficult to more precisely predict to what extent consumer telecom spending will be affected, and how operators will act.''
The company said it needs to widen its savings program as the global financial crisis continues to pressure the industry, tough competition and the technical development. That would mean cutting 5,000 jobs, or more than 6 per cent of its 79,000-strong work force, Ericsson said.
The Stockholm-based company said it expected restructuring charges of 6 billion-7 billion kronor, yielding annual savings of around 10 billion kronor by the second half of the year.
In a webcast news conference with analysts and journalists, Svanberg said ``we're doing this of course because of the uncertainty in the market.''
For 2009, he said it will be a priority for the company to stay close to its customers to understand their behavior and needs, adding his company is also preparing for tougher times to be able to defend its margins and extend its leadership.
Agencies
Subscribe to:
Posts (Atom)