Alcatel to cut U.S. workforce by 2,500

Alcatel SA said Monday that it will lay off 2,500 employees, or 16 percent, of its U.S. workforce, because of a slowdown in customer spending.

The Paris-based telecommunications infrastructure company will also move its manufacturing business from Raleigh, North Carolina to sites in Arizona and Mexico, and employ some contract workers, said spokesman Brian Murphy said. The company will keep its research and development facility in Raleigh, Murphy said.

Alcatel has seen reduced orders from customers across the board, not just in certain industry sectors, Murphy said. Alcatel employed 15,000 workers in the U.S. before the layoffs, out of a total of 110,000 employees worldwide.

Affected workers will receive a severance package and outplacement services, Alcatel said in a statement.

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