Alcatel has said that it is to increase its existing job cuts program, and will make a further 10,000 staff redundant. Alcatel says that it now expects its headcount to be around 60,000 employees at the end of 2003, including the additional work force of Shanghai Bell now consolidated. The company started the year with about 83,000 staff and had previously announced plans to reduce that total to 70,000. The company had already cut its workforce from about 113,000 at the end of 2000.
Alcatel also announced an additional restructuring provision of US$490 million will be booked over the next three quarters and will be funded by disposal of assets.
For the second half of 2002 Alcatel expects revenues to be around 10% below the first half at constant perimeter, with a weak third quarter and a seasonally stronger Q4. Q3 should be sequentially down by 15 % in sales but with limited impact on operating income due to a faster than anticipated reduction of fixed expenses.
All Alcatel financial obligations are met without assets divestitures. Alcatel maintains its year-end 2002 net debt target at below the 2001 level after factoring in throughout the second half, the worsening of the financial situation of some of its customers.
More details will be given in Alcatel's Q3 call on October 30th.'"
Posted to the site on 23rd September 2002
Posted to: www.cellular-news.com/story/7601.php