Alcatel to Trim U.S. Workforce by 900
Alcatel
(ALA)
, whose planned
merger with
Lucent Technologies
(LU)
recently failed, said on Friday it will cut 5.6 percent of its U.S. workforce and close three U.S. facilities because of rough business conditions in its largest market,
Reuters
reported.
The French telecom equipment company said the job cuts, about 900, and the plant closures are expected to occur throughout the second and third quarters of this year and be done by the fourth quarter. Alcatel has about 15,900 workers in the U.S., which accounted for about 23 percent of the Paris giant's sales last year.
"With business conditions in the U.S. remaining tough, the need to continue to cut our operating costs remains important," Mike Quigley, president of Alcatel Americas, said in a statement. "These efforts will better position us to operate more efficiently today while preparing us for more rapid growth once business conditions improve."