Lucent May Announce Huge Job Cut on Wednesday

The ailing company may trim 10,000 jobs, or 8% of its workforce, <I>The Wall Street Journal Online</I> reports.
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Lucent Technologies

(LU)

could announce Wednesday that it will cut as many as 10,000 jobs, or 8% of its workforce.

It also could disclose a big restructuring charge when it releases its fiscal first-quarter results, analysts say. (The potential cuts were first reported by

The Wall Street Journal's

online edition.)

The announcements would be part of the Murray Hill, N.J.-based company's effort to right itself. It has had a tough time in recent months. Just last month, the company

warned it would post a loss of 25 cents to 30 cents per share for its fiscal first quarter, which ended in December. Lucent also had to restate its fiscal fourth quarter financials due to misreported sales and product buybacks. The company brought the period's revenue down to $8.7 billion, a $700 million reduction from $9.4 billion it previously reported.

Lucent's repeated and profound failures have come at a time when the industry was enjoying a tremendous boom. With Internet traffic surging, network builders raced to the market last year for new speedier gear to help stay ahead of demand. With investors underwriting the gold rush, telecom spending reached an all-time high. But knocked flat on its back by these missteps, Lucent watched the action largely from the sidelines. Now that the economy has cooled and its customers' budgets are less than robust, Lucent has an even more difficult challenge of getting back into the market.

Lucent is the world's largest manufacturer of telecommunications equipment ranging from communications chips to elaborate optical switching systems. It vies against rivals

Nortel

(NT)

and computer networking dynamo

Cisco

(CSCO) - Get Report

.