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MONDAY, NOVEMBER 23, 2009
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Alcatel-Lucent CEO, Chair to Quit After 6th Straight Loss

6th straight quarterly loss for troubled telecom giant

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(Newser) – Patricia Russo, the CEO who led the merger of Alcatel-Lucent, will step down by the end of the year after the troubled telecom giant released yet another grim quarterly report, posting a net loss of $1.73 billion. That figure was much larger than analysts had predicted, and almost double the loss from the same quarter last year, writes the New York Times. The company's chairman will also resign.

Investors have grown restless with management at the Franco-American telecom; Alcatel-Lucent hasn't made a profit since its formation 2 years ago. This quarter's loss resulted largely from a $1.27 billion writedown from an American division specializing in mobile technology. Alcatel-Lucent put a brave face on the departure of both CEO and chairman, saying, "The merger phase is now behind us."

Alcatel-Lucent's CEO Patricia Russo addresses the general assembly of the group, in Paris, Friday, May 30, 2008.
Alcatel-Lucent's CEO Patricia Russo addresses the general assembly of the group, in Paris, Friday, May 30, 2008.   (AP Photo/Ioan Valat)
World's biggest telecommunications equipment maker, Alcatel-Lucent's CEO Patricia Russo talks to chairman Serge Tchuruk during the general assembly of the group, in Paris, Friday, May 30, 2008.
World's biggest telecommunications equipment maker, Alcatel-Lucent's CEO Patricia Russo talks to chairman Serge Tchuruk during the general assembly of the group, in Paris, Friday, May 30, 2008.   (AP Photo/Ioan Valat)
French telecommunications giant Alcatel-Lucent says its chairman and CEO will both resign later this year.
French telecommunications giant Alcatel-Lucent says its chairman and CEO will both resign later this year.   (AP Photo/Christophe Ena,File)
The CEO and chairman of Alcatel will step down by the end of this year following a disastrous quarter.
The CEO and chairman of Alcatel will step down by the end of this year following a disastrous quarter.   (AP Photo/John Raoux)
Alcatel-Lucent chief executive officer Patricia Russo addresses reporters during a press conference in Paris, Friday Feb. 8, 2008.
Alcatel-Lucent chief executive officer Patricia Russo addresses reporters during a press conference in Paris, Friday Feb. 8, 2008.   (AP Photo/Remy de la Mauviniere)
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