Alcatel, Europe's largest telecoms equipment manufacturer, announced today that it will be cutting a further 10,000 jobs by the end of next year as the industry continues its downward spiral.
Company spokesman Klaus Wustrack confirmed that the cuts are additional to the 13,000 or so already announced.
"The market has been in a nosedive since April last year and as a result we have had to announce further restructuring plans," he said.
Wustrack added that the workforce is currently around 83,000 strong, and that the plan is to downsize it to 60,000 by the end of 2003. "This is 9,000 to 10,000 more cuts than originally planned," he admitted.
Demand for communications equipment has plummeted as the industry remains depressed, and a number of large telcos have gone out of business.
Alcatel said that sales in the second half of this year would be down 10 per cent on the first half.
The company has lost about €7.5bn over the last five quarters and expects no recovery this year. It will cut spending in a bid to break even on quarterly sales of €3bn at the end of next year.
Shares dropped by about 15 per cent earlier this year, but appear to be on the up again, jumping 1.6 per cent to €2.55 this morning.
Wustrack added that Alactel had formed a company in China and said: "People are still actually joining Alcatel in China."
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