Alcatel-Lucent to cut 5,000 jobs

Alcatel-Lucent has said it will slash costs and cut 5,000 jobs after it posted a net loss for the second quarter of €254m.

The company has operations in more than 130, including a plant in Blanchardstown, West Dublin.

The Franco-American telecommunications equipment maker unveiled a restructuring plan today that it said would take €1.25bn off its bottom line by next year. Some of that sum includes cuts that had already been announced.

The company said the global economic slowdown and heightened competition were hitting profits and that it would exit or reduce operations in markets where it was struggling.

Alcatel warned last week that it would miss its earnings estimates for this quarter and the year.

The Paris-based firm reported revenue of €3.5bn for April to June, down 7.1% from the same period last year.