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Technology Stocks : Lucent Technologies (LU) -- Ignore unavailable to you. Want to Upgrade?

To: Larry Brew who wrote (18566)	8/3/2001 2:38:02 PM
From: elmatador	Respond to of 21876

Lucent considers European withdrawal By Ouida Taaffe, Total Telecom 03 August 2001 U.S. equipment vendor, Lucent Technologies has confirmed reports in the German media that it met with European works councils Thursday to discuss giving up its European production facilities. This means that the plants in Europe could be run by third parties, sold off, or even closed. However, the vendor described as "pure speculation" figures quoted in German papers about the potential level of job cuts. A Lucent spokesperson said the company was "moving towards a different business model," as part of its cost-cutting drive. The German weekly business magazine Wirtschaftswoche had reported "worst case" figures that suggested that 35% of European R&D staff could lose their jobs, while 40% of the sales staff might go, and transport and logistics staff could be cut by 35%. "General staff" jobs might be reduced by as much as 50%. Lucent recently announced third-quarter figures that were worse than the market had expected, with a net loss of US$3.25 billion. The company's revenue from continuing operations fell year on year by 21% in the third fiscal quarter to US$5.82 billion. Lucent stated at that time of its Q3 results that it would lay off between 15,000 and 20,000 staff, in addition to the 19,000 job cuts already announced in January. The aim is to return to profitability in the fiscal year 2002. Spending on R&D in 2002 was expected to be 12% of revenue. It is not clear how many further job cuts the plant sell-offs in Europe would bring.