Alcatel's Carrier Internetworking division has made 90 of its 244 UK workers redundant as it continues to suffer in the current telecoms slowdown. A spokeswoman confirmed the news but declined to comment.
Carrier Internetworking was acquired from Newbridge Networks in 2000 in a deal that the company claimed at the time would make it one of the top players in the next-generation networking market.
The acquisition combined Alcatel's expertise in fast internet access with Newbridge's strong ATM multi-service capabilities and targeted carriers as customers.
"Its main customers are telcos and it is having trouble because these customers are struggling and are just not buying," said Manny Pinon, sales and marketing director at Alcatel distribution partner Norwood Adam.
Keith Humphreys, an analyst at EuroLAN research, said: "This does not shock me but I am surprised this didn't happen earlier."
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