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Wednesday, 31 October 2007 |
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…but for how much longer can Patricia Russo cling on at Alcatel-Lucent? More blood on the walls at the French equipment maker.
Alcatel-Lucent today announced a further 4,000 job cuts by 2009, taking the total since last year’s French takeover of the US company (a ‘merger’ in name only) to 16,500. The move will bring savings of €400mn. For Q3, income reached €70mn; with restructuring costs taken into account, that translates into a €258mn loss.
For a change, some of the blood has been spilled in the boardroom, notably in the form of CFO and Alcatel old-hand, Jean-Pascal Beaufret. His departure comes as part of a general tinkering with the company’s management structure.
The moves were announced by Patricia Russo, the former Lucent boss who took the helm after the takeover was completed.
“During the first nine months of operations as a single company, we strengthened our position in key strategic markets and technologies such as IP and mobile broadband required to position the company for long-term sustained growth”, she trilled. “Having said that, and in spite of the promise of this industry and the long term benefits of the merger, we recognize that market conditions remain difficult, with continued pressure on revenues and margins due to intensified competition and some slowdown of spending in North America.”
Life has not been easy for this particular American in Paris since she assumed the position, with regular speculation about her future. For grumbling French investors, her nationality alone makes her an easy target. Russo must now pin her hopes on a turnaround or at least signs of one, in the next four quarters. Otherwise she’ll be heading home.
Jim Chalmers
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