Back at the start of summer, Alcatel-Lucent and its new CEO Michel Combes painted a few broad strokes of the recovery landscape the company was aiming for, calling it The Shift Plan. Today's further strokes were of a more somber variety, as they announced the intention to slim down to the tune of 10,000 jobs worldwide over the next two years.
Alcatel-Lucent's plans to restore profitability by saving 15% of fixed costs by 2015 were presented to the European works council today. Of the 10,000 jobs that will disappear from the company's rolls, the biggest hit will be 4,100 in EMEA, followed by 3,800 in APAC, and 2100 in the Americas. By then they will have cut the number of business hubs globally by half. Of course, all these numbers are of the suspiciously round variety, and the details will take a long time to work their way out.
Nobody is going to be happy about the layoffs that will be on the way, least of all those in European markets where unemployment is still painfully high. But everyone knew perfectly well they were coming nonetheless. The Franco-American giant had been struggling long before its French and American pieces merged, and while there have been some bright spots the overall trajectory has yet to turn upwards.