Alcatel-Lucent rings changes to curb decline

10 September 2012 | Kavit Majithia


European vendor Alcatel-Lucent is to reshuffle its management and centralise procurement, sales and marketing in line with its €1.25 billion cost cutting project announced in July.

The company said it would also abandon plans to implement a regional restructure to its business, and it will now operate as one global organisation.

Alcatel’s CFO, Paul Tufano, will take charge of supply chain, in addition to three business units; enterprise, strategic and submarine.

There will now be six executive committee members, down from 12, to oversee what chief executive, Ben Verwaayen, describes as the implementation of a “simplified business model”. The group posted a loss in the second quarter of this year, and the company has recently struggled with lower operator spend in key markets.

Alcatel will also implement a new business unit named “Core Networking”, combining product lines within IP and optics gear.