Alcatel-Lucent to cut 1,000 management posts

PARIS: Telecom equipment giant Alcatel-Lucent said on Friday it planned to cut 1,000 management posts and reduce its sub-contractors by 5,000 in an effort to save 750 million euros (one billion dollars).

Alcatel-Lucent said it hoped to realise the savings by the fourth quarter next year, with production costs cut accordingly by a third, and research and development cut by two thirds.

Previous restructuring plans included 16,500 job losses worldwide by the end of 2009 after the company chalked up a series of heavy losses after its formation in 2006.

For 2009, Alcatel-Lucent said it expected the telecoms market to shrink by between eight and 12 percent but that it should be be able to hold onto its market share, with operating earnings "in balance."