Lucent Plans to Reduce Work Force by Another 10,000

The struggling telecommunications equipment maker also said it expects to report a bigger loss than previously expected for its recently ended fourth fiscal quarter. It said it now expects to lose as much as 65 cents per share. It had been expecting a 45 cent a share loss on a pro forma basis.

The job outlook was part of Lucent's plans for a more aggressive restructuring that it said would allow it to break even at lower revenue totals.

The disclosures come as Lucent and its rivals are facing anemic demand for telecommunications gear.

The Murray Hill-based company said it will have 35,000 employees at the end of its 2003 fiscal year which ends in September 2003, down from its previously announced target of 45,000 for the end of the calendar year 2002.

Lucent said it will record a restructuring charge of about $1 billion in the fourth quarter and a charge to equity of $3 billion due to a decline in the value of assets in its pension plan.

The company declined to discuss the restructuring at length, saying it would provide further details on the plans and their financial impact when it announces its earnings on Oct. 23.

Lucent said it plans to reduce the amount of revenue at which it can break even to $2.5 billion per quarter and hopes to reduce that further. It had previously said it could break even with quarterly revenue of $2.5 billion to $3 billion.

The company said it continues to have sufficient liquidity to fund its operations and business plans.

'Based on conversations with our customers, we are tightly focusing our investments on the nearest and clearest market opportunities that will help them expand their existing networks and offer next generation services,' said Patricia Russo, the company's chief executive.

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