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News > Technology
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Lucent warns, will cut more jobs
Sees wider 4Q loss than earlier guidance; will take $1B charge on 10,000 additional job cuts.
October 11, 2002: 10:16 AM EDT

NEW YORK (CNN/Money) - Lucent Technologies Inc. warned Friday that its loss will be far greater that earlier guidance for the just-completed fiscal fourth quarter and said it will cut an additional 10,000 jobs as it tries to return to profitability in fiscal 2003.

The company said it now expects to lose up to 65 cents a share, excluding special items, in the quarter ended in September, rather than its earlier guidance of a 45 cent loss on that basis. The company lost 28 cents a share excluding special items a year earlier.

Lucent also said it still expects revenue to fall 20 to 25 percent from the $2.95 billion it posted in the third quarter, which would put fourth-quarter revenue between $2.2 billion and $2.4 billion. Analysts surveyed by research firm First Call expect revenue of $2.3 billion in the just-completed period.

Lucent said it will take a $1 billion restructuring charge in the quarter as it cuts 10,000 jobs during the current fiscal year, which ends in September 2003. That will bring employment to 35,000, down 22 percent from its previously expected total of 45,000 at the end of calendar 2002. The company had not previously set any job target for the end of the current fiscal year.

The new cuts will allow it break even with revenue of $2.5 billion in the quarter rather than its earlier goal of breaking even on revenue of $2.5 billion to $3.0 billion. And it said it will work to continue to lower its breakeven point. Analysts do not expect Lucent revenue above $2.4 billion in any quarter in the new fiscal year, as the company is expected to continue to lose money every quarter.

Shares of Lucent (LU: down $0.03 to $0.67, Research, Estimates) were slightly lower early Friday following the pre-market announcement.  Top of page




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