Alcatel-Lucent Cuts Go Deeper — 7,500 Jobs Gone and Counting 78
Dawn Kawamoto writes "Alcatel-Lucent has cut 7,500 jobs since the start of the year — a couple thousand more than what employees of the embattled telecom equipment maker may have been expecting. Last summer, Alcatel-Lucent said it expected to cut over 5,000 jobs by the end of 2013. Well, cuts have gone deeper than that, and the company's newly minted CEO, Michel Combes, told Wall Street during the second quarter earnings call Tuesday to expect additional cuts and the related cost savings in the coming quarters."
Cutting jobs for out-dated / legacy systems (Score:3, Insightful)
Good Job! Sorry if anyone here was affected.
Pay for nothing (Score:5, Insightful)
Big corporation reduce workforce to increase profit. At some point they will produce everything for cheap using abroad subcontractors. That means a lot of money goes straight to shareholders without having any chance to go in workers' pockets. And since workers are also consumers, this badly impact the economy
At some point we will need to find a way to tax the profit and reinject money in consumer's pockets so that they can purchase the goods produced.
Legacy/OutDated != waste (Score:5, Insightful)
For companies with a "well-established" product line, legacy systems are often essentially "free money", especially for telco equipment with embarrassingly long lifetimes.
Its Trickle Down Economics (Score:5, Insightful)
Screw the employee, pay the shareholders.
After they fire you they'll raid your savings and 401k, sink your mortgage under water, and let you go without viable medical options.
Profit for few at the expense of many. That the corporate way.
Time to eat the rich and banish k street.
Re:The problem is (Score:3, Insightful)
The "big boys" only use A-L. Cisco, while decent, is enterprise grade. Carrier grade (think NEBS) is a whole different story, and is far more expensive.
A-L switches are different from Cisco in architecture. Very different. They are not meant for core work, but being able to handle tier 1 grade peering.
A-L still has a big market coming up. 10GigE is starting to go from the backbone to the internal parts of a fabric. A-L also would profit by the converged SAN/network switch trend with FCoE and iSCSI.