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Lucent plans huge charge
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January 23, 2001: 7:21 p.m. ET
Telecom equipment maker reportedly to cut 10,000 jobs, plans $1B charge
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NEW YORK (CNNfn) - Lucent Technologies Inc. is expected to announce 10,000 job cuts and plans to take a restructuring charge of more than $1 billion, press reports said Tuesday.
Murray Hill, N.J.-based Lucent (LU: Research, Estimates) will announce the moves in its fiscal first quarter earnings release Wednesday, according to the online version of the Wall Street Journal, citing analysts.
The charge, which could include write-offs for inventory, plant closings, discontinued products and defaults on debt, is expected to be between $1 billion and $2 billion, the Journal said. Such a charge could approach or exceed Lucent's net income from continuing operations for fiscal 2000, which was $1.68 billion, including one-time items.
 A Lucent spokesman declined to comment, saying only that the telecom equipment maker would announce its plans Wednesday before the market opens.
Lucent has been mired in corporate problems for the past year. On Oct. 23, Lucent ousted its chairman and chief executive officer, Richard McGinn, and named an interim replacement while it searches for new talent to fill the top slot. The company brought back Henry Schacht, the company's CEO from 1995 to 1997, to be the interim chairman and CEO until the board completes its search. On that same date, the company issued its fourth earnings warning so far this year.
In December, Lucent Technologies warned that first-quarter earnings would be much lower than expected and announced a wide-scale restructuring plan which will result in job cuts.
Lucent has also plummeted from its 52-week high of $77.50. On Tuesday, shares closed down 25 cents to $18.81. 
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