Lucent Technologies is to slash another 10,000 jobs and intensify its restructuring following worse-than-predicted revenues.
Over the weekend the troubled telecoms equipment maker confirmed rumours circulating for weeks that huge job losses were on the way.
According to Associated Press reports the company will be left with 35,000 workers - about 23 per cent of its peak workforce of 153,000 three years ago.
A spokesman said the 10,000 workers, from throughout the company, would be off the payroll by next March.
Lucent said it expects to lose up to $2.2bn - its ninth straight quarterly loss.
The net loss will be at least $3.2bn, including a $1bn restructuring charge to cover severance pay, write-downs of inventory that is not selling, and other costs. The company expects to lose $12bn in 2002.
The job cuts and other restructuring moves are needed to lower Lucent's break-even point - where revenues cover expenses - so it can meet its target of returning to profitability by next summer, the company said.
Last month Lucent said it could break even with quarterly revenue of $2.5bn to $3bn; now it says it must cut costs to $2.5bn or less.
Lucent and its rivals have been badly hurt by anaemic demand for telecoms gear as telephone and internet service providers cut back sharply on spending after unprecedented growth during the late 1990s.
Lucent expects revenues to fall another 20 percent in its 2003 fiscal year. Given its break-even target, the company could have about $10bn in revenues for the whole year, down from its expected fiscal 2002 total - about $12.25bn.
Lucent had 52,000 workers as of 30 June. In July it said it would cut another 7,000 jobs by 31 December.
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