More Losses at Alcatel, and More Layoffs

French-American telecom giant still sputtering 18 months in
By Jason Farago,  Newser Staff
Posted Nov 1, 2007 11:22 AM CDT
An Alcatel facility in France. The company has announced yet more layoffs.   (Getty Images)
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(Newser) – Alcatel-Lucent, the troubled Franco-American telecommunications company, announced yet more job cuts yesterday as the company posted its third consecutive quarterly loss. Alcatel had already planned to downsize by 12,500 employees, but another 4,000 will lose their jobs to reduce costs. 18 months after the French takeover of Lucent, reports the Financial Times, the merger has produced not a powerhouse but a slow-moving behemoth.

One former board member insisted that "the problem is cultural": the French and American sides of Alcatel-Lucent are guarding their own territory rather than integrating their forces. As the company continues to stutter, competitors like Ericsson and Cisco have picked up market share. CEO Patricia Russo has announced a major management reshuffle, but the task ahead of her is enormous.