Lucent posts third-quarter loss, plans job cuts

Lucent Technologies today posted a third-quarter loss and said it is cutting 15,000 to 20,000 employees in an effort to become profitable.

The Murray Hill, N.J.-based telecommunications equipment giant posted a US$1.89 billion loss, or 55 cents per share, including a $684 million restructuring charge, amortization of goodwill and other acquired intangibles, compared with net income of $286 million, or 9 cents per diluted share in the same quarter a year ago. Revenue for the quarter was $5.82 billion, down from $5.915 billion in the second quarter.

In a statement, the company said it was laying off 15,000 to 20,000 employees in an effort to reach profitability and positive cash flow during fiscal 2002. The company also said it would take a $7 billion to $9 billion charge in the fourth quarter related to job and product cuts and asset write-offs.

The company, which employs 104,000 people, has already slashed nearly 19,000 jobs since January.

"I am pleased with the progress we have made on all points of Phase 1 of our restructuring program," said Henry Schacht, Lucent's chairman and CEO, in the statement. "However, we intend to go deeper with a new phase of our restructuring to reshape Lucent for future growth and profitability even more quickly."

Lucent also said it has entered into an agreement to sell its manufacturing plants in Oklahoma City and Columbus, Ohio, to electronics contract manufacturer Celestica Inc. for up to $650 million.

The company also said it will sell most of its fiber-optic cable unit to Furukawa Electric Co. in Japan for $2.53 billion and will sell its interests in two joint ventures in China, Lucent Technologies Shanghai Fiber Optic Co. and Lucent Technologies Beijing Fiber Optic Cable Co., to Corning, N.Y.-based Corning Inc. for $225 million.

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