Lucent job cull rises on $3.25bn loss

Lucent job cuts in 2001 will now total at least 45,000 and may reach 50,000 after the troubled telco equipment maker said it would axe a further 15,000 to 20,000 jobs to help slash annual costs by an additional $2bn. Lucent has already announced job cuts of 29,000 this year.

The company said its losses for the three months to the end of June deepened to $3.25bn on revenues of $5.82bn, down from losses of $301m on sales of $7.41bn for the same period a year ago. Sales for the three months to the end of April 2001 were $5.8bn.

Chairman and chief executive Henry Schacht said in a conference call: "We are taking decisive action to turn Lucent around. We're speeding up that action."

Frank D'Amelio, chief financial officer, added: "We're taking aggressive action to drive costs out of the business."

Schacht said the firm would return to profitability next year.

Telecoms equipment makers have been hammered recently after many phone operators decided to delay or cancel orders that equipment makers had anticipated would be placed to help build or extend networks.