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Lucent eyes further cuts
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August 24, 2001: 7:56 a.m. ET
Company ties growth targets to cost cuts; customer care unit on the block
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NEW YORK (CNNfn) - Lucent Technologies could undertake further cost cutting if the beleaguered telecommunications equipment maker wants to meet its growth targets for 2002, according to a published report Friday.
The Wall Street Journal, citing people close to the matter, said Lucent (LU: Research, Estimates) executives are optimistic of an upturn in the company's revenue growth next year but are not relying on industry growth to pick up and carry Lucent to its projected profit target.
"These are uncertain times. We've got on our belts, suspenders, parachutes and skyhooks," the report quoted Lucent CEO Henry Schacht, citing the company's cash reserves.
If Lucent cuts as much as $4 billion annually, company officials expect it eventually to break even on $4.75 billion quarterly revenue, the report said.
Lucent executives expect the slump in the sector to lift by 2003 and forecast industry growth of between 10 and 12 percent a year, falling well under the 20 to 30 percent range of the late 1990s, the paper said.
Plagued by financial woes, Lucent committed to a massive restructuring effort, including almost halving its 123,000 employees, shutting offices worldwide, and reshuffling product lines, the WSJ said.
Separately, Lucent is courting buyers for its customer care and billing division, Kenan Systems, the report said. Lucent acquired the unit in 1999 for $1.4 billion in stock.
Lucent shares shed 3 cents to $6.65 Thursday. 
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Lucent
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