IP: Lucent May Cut Up to 20,000 More Jobs

[David Farber <dave@farber.net>]

>
>Lucent May Cut Up to 20,000 More Jobs
>
>By THE ASSOCIATED PRESS
>
>
>
>Filed at 9:04 a.m. ET
>
>NEW YORK (AP) -- Lucent Technologies Inc. (news/quote) plans to cut
>another 15,000 to 20,000 jobs from its payroll and is eliminating
>its dividend in a bid to return to profitability.
>
>The announcement Tuesday came as the embattled telecommunications
>maker posted a fiscal third-quarter loss of $3.25 billion, far
>wider than expectations.
>
>Separately, Lucent said it had reached an agreement to sell its
>fiber-optics operations to Furukawa Electric Co. and Corning Inc.
>(news/quote) for a total of $2.75 billion, part of two separate
>deals it announced Tuesday.
>
>Lucent also said it was eliminating its dividend beginning Sept. 1,
>in a move the company said would free up $68 million per quarter.
>
>Lucent has already cut its work force by 19,000 jobs since January,
>and has also eliminated 5,500 contractor positions. The additional
>cuts will mean Lucent has trimmed its work force, which numbered
>123,000 at the beginning of the year, by 32 percent.
>
>Lucent will take a $7 billion to $9 billion charge in its fiscal
>fourth quarter to pay for the restructuring, as well as additional
>asset write-downs as the company streamlines its product offerings.
>
>``I am pleased with the progress we have made on all points of
>Phase I of our restructuring program,'' chief executive and
>chairman Henry Schacht said. ``However, we intend to go deeper with
>a new phase of our restructuring to reshape Lucent for future
>growth and profitability even more quickly.''
>
>For the three months ended June 30, Lucent lost 95 cents per share,
>compared with a net loss of $301 million, or 9 cents share, in the
>year-ago quarter, the Murray Hill, N.J.-based company said Tuesday.
>
>Excluding discontinued operations, Lucent lost $1.89 billion, or
>55 cents per share. Excluding other one-time items, including a
>$684 million restructuring charge, Lucent lost 35 cents per share.
>
>Analysts surveyed by Thomson Financial/First Call were expecting a
>loss of 21 cents per share.


http://www.nytimes.com/aponline/business/AP-Earns-Lucent.html



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