Boston, MA 10/24/2013 (wallstreetpr) – For some time now Alcatel Lucent SA (ADR) (NYSE:ALU) has been in trouble. However, things seem to be going even worse for the company now. Over the last 15 years, the company has continuously made strategic mistakes that resulted into the company’s merger with the American based firm Lucent. After the merger as affirmed by Alcatel-lucent CEO Michel Combs the company has made a $ 1 billion loss annually ever since the merger.
In a bid to help restructure the company and attempt to save it and resurrect it back to its heydays, the company has opted to lay off workers for the sixth time in just seven years. This has seen the move countered by protests by the 1500 workers of the company’s firm in France. The company will also close two of its sites in Toulouse and Rennes both in France. An estimated 10,000 of the company’s workers are expected to be laid off around the world.
In a bid to attract Nokia Corporation (ADR) (NYSE:NOK) the company will also sell assets worth €1 billion hoping that the slimmer business structure will be a more attractive for acquisition by Nokia.
However, all might not be lost. The company’s new management has put up a three year plan that will help the group focus on the main and more profitable activities of the group. 40% of the company’s revenue comes from IP technology, routers and cloud and network services. These are the areas that the company hopes to concentrate on to help revive the dying giant. Although, with competitors like Erickson who have a market capitalization of $42.57 billion against Alcatel-Lucent’s market cap of just $8.18 billion this is not going to be easy. But if the deal with Nokia goes through, the two could be a major force to reckon with and could bring major competition for their fierce competitors Erickson and Huawei.