Facing its first loss since 1995, Alcatel is reportedly planning to sell all but 10 of its 120 factories by the end of 2002.
The Paris-based phone equipment maker expects to lose money for the three months to the end of July, and will sell off the factories to contract manufacturers, according to a report in The Wall Street Journal.
Alcatel has already farmed out mobile phone production, and has sold its cable unit in a flotation and revealed plans to cut 11,000 jobs this year.
According to the report, Alcatel will focus on optics, phone networks and space technology, because it believes these will show the fastest future growth as demand for speedier data and video transmission rises.
A planned merger between Alcatel and Lucent collapsed last month.
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