Company could disappear, warns Alcatel-Lucent CEO
15 October 2013 |
Alcatel-Lucent's long-term future is in doubt after the company’s CEO Michel Combes told a European radio station that the French vendor “could disappear”.
The company has been in debt since 2006, when Alcatel and Lucent first merged, and it has been criticised for failing to keep up with key technological trends.
Workers at Alcatel-Lucent are preparing to protest against the proposed cut of 10,000 jobs companywide in Paris today.
Labour unions are backing the protests and several sites in the country will be closed as a result.
Combes told reporters that he had four months to negotiate terms with the unions.
“This company could disappear,” he said.
“The plan sets targets that are key to the survival of the company... but it can obviously be improved. That’s the point of the social talks that begin today.”
Despite its losses, Alcatel-Lucent still seems to be partner of choice for a number of operators, including Zain KSA, which yesterday announced the implementation of Alcatel-Lucent’s Agile Optical Network in Saudi Arabia.