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Alcatel to cut 2,500 jobs
French networking firm to cut 2,500 U.S. jobs, consolidate facilities
July 9, 2001: 4:54 p.m. ET
NEW YORK (CNNfn) - French networking firm Alcatel SA, which saw its $23 billion merger with Lucent Technologies fall through, unveiled plans Monday to cut 2,500 jobs and consolidate facilities in the United States.
The reductions are part of the French telecom equipment maker's acceleration of its cost management initiatives in the United States. Affected employees will receive a severance package and outplacement services, the company said in a statement.
American depositary receipts (ADRs) of Alcatel have plummeted more than 80 percent from their 52-week high of $86.25.
Paris-based Alcatel (ALA: down $0.27 to $16.25, Research, Estimates), Europe's fourth-largest telecom equipment maker, announced its restructuring plans in late May, which it said are due to the slowdown in the U.S. economy.
In May, Lucent Technologies (LU: up $0.25 to $6.35, Research, Estimates) and Alcatel SA called off their $23.5 billion merger. The day after the Lucent talks collapsed, Alcatel warned that it would post a loss of $2.6 billion in the second quarter. In June, Alcatel said it would sell most of its factories within 18 months.
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