Alcatel To Cut More Jobs

Alcatel

In its latest round of job cuts, the Paris-based telecommunications vendor said in a statement that it expects its head count to be at around 60,000 at the end of 2003. In June, the company said it planned to end 2003 with 70,000 employees.

The company employed close to 110,000 people at the end of 2000.

Alcatel's goal is to reach a break-even sales target of about $3 billion by the end of 2003, the company said.

"This is more than 25 percent below the current level of business and way below our present estimate of next year business," the statement said.

Blaming further deterioration of telecom markets, Alcatel said sales for the second half of 2002 are expected to be 10 percent below the first half, with third-quarter sales down 15 percent from the second quarter.

In July, Alcatel reported second-quarter revenue of $4.28 billion and first-half revenue of $8.61 billion.

Shares of Alcatel traded up 21 cents at $2.66 Friday afternoon.