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News
Alcatel cuts 1,100 jobs
April 2, 2001: 4:46 p.m. ET

French telecom-equipment maker reduces U.S. work force by 1,100
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NEW YORK (CNNfn) - French telecom-equipment maker Alcatel announced Monday that it is reducing its U.S. work force by 1,100 positions, or less than 5 percent, in an effort to remain competitive.

Paris-based Alcatel  (ALA: Research, Estimates) cited the U.S. economic slowdown and reduced customer spending for the job cuts. Of the reductions, 800 are full-time workers, the company said in a statement.

graphicAffected employees will receive a severance package and outplacement services.

"It is important, during these tough economic times in the U.S., for us to manage down our cost structure better than ever before," said Mike Quigley, president of Alcatel Americas. "These types of employee impacting decisions are very difficult to make, but they are essential given the current U.S. business environment."

In January, Alcatel reported a 26 percent rise in profit but downgraded its 2001 sales-growth targets amid reduced forecasts for mobile phone sales. It said 2001 sales should rise by between 20 percent and 25 percent, compared with its earlier target of 25 percent.

American depositary shares for Alcatel gained 24 cents to $29 Monday. graphic




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