October 11, 2002 -- (WEB HOST INDUSTRY REVIEW) -- Telecommunications equipment maker Lucent Technologies said on Friday that it will accelerate its cost-cutting efforts to combat falling sales, cutting another 10,000 jobs and taking a charge of $4 billion.
Level 1 PCI DSS Certified Service Provider! DataPipe delivers the best network & support; top tier data centers; New York metro, Silicon Valley, London, Hong Kong, Shanghai. DataPipe - Personal Touch, Global Reach.
Lucent says it expects to have 35,000 workers by the end of the year, down from a high point of 100,000 two years ago.
The company says the new layoffs will cost about $1 billion in restructuring charges, and will result in a $3 billion charge related to the declining value of stock in its pension fund. The increased charges should raise the company?s pro forma fourth quarter loss by as much as 20 cents per share.
According to Lucent, sales are expected to fall by as much as 25 percent from $2.95 billion in the fiscal third quarter. The company will also post its tenth straight quarterly loss.
In a statement, Lucent said it intends to return to profitability in fiscal 2003 and is taking more aggressive restructuring actions to lower its breakeven point.
The new layoffs and cost cuts will allow the company to end fiscal 2003 with more than $2 billion in cash, says the company.
