Alcatel-Lucent to reduce its workforce by end-2015, to reduce 10,000 positions

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Alcatel-Lucent is planning to reduce close to 10,000 jobs globally by end-2015. The company plans to reduce 4,100 positions in Europe, Middle East and Africa, 3,800 in Asia Pacific and 2,100 in US.

By the end of 2015, Alcatel-Lucent will halve the number of its global business hubs. This initiative follows the company?s efforts to improve operations and reduce costs as part of The Shift Plan.

The plan aims to position Alcatel-Lucent as a specialist in the IP networking, cloud computing and ultra-broadband access spaces.

As part of The Shift Plan, the company aims to achieve fixed cost savings of Euro 1 billion or more than 15 per cent of fixed costs by the end of 2015. It is planning to achieve the target by reallocating research and development (R&D) funds into various next-generation technologies which are expected to account for 85 per cent of the total R&D spend by the company in 2015. In addition, the company also plans to reduce R&D spend in legacy technologies by 60 per cent and administrative, sales and support functions.