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Alcatel-Lucent quits end-to-end ambitions

Paris-headquartered telecoms equipment vendor Alcatel-Lucent has revealed more details about its Performance Program, announced last July with the intention of shaving €1.25bn of costs and 5,000 jobs by the end of next year.

In addition to a new operating model which sees it focus on (unspecified) core products, the company has unveiled a new business group called Networks & Platforms, which will replace the existing regional operating structure with four global product & services business units, each with full P&L responsibility. All changes are due to come into effect from January 1st, 2013.

The new business units are: Core Networks, focused on IP and Optics products under the management of Basil Alwan; Fixed Networks, which will seek to solidify the company’s position in this market and synergies with Small Cell deployment; Wireless, focused on serving its existing customer base in North America, China and EMEA; and Platforms.

Alcatel-Lucent has also reshuffled its executive leadership team, appointing Paul Tufano as Chief Operating Officer, with worldwide responsibility for Supply Chain, Procurement and three individual focused businesses (Enterprise, Strategic Industries and Submarine), in addition to his current role as Chief Financial Officer.

Meanwhile, Robert Vrij becomes President Global Sales & Marketing, leading a single global sales organisation to oversee and manage all customer-facing commercial relationships. Stephen Carter becomes President Managed Services & EVP Corporate Restructuring, in addition to overseeing the Performance Program and Corporate Marketing & Corporate Communications.

Philippe Keryer becomes President of the aforementioned Networks & Platforms unit, while George Nazi remains President of the previously created Global Customer Delivery division, and Jeong Kim remains President of Bell Labs and Chief Strategy Officer, and will be responsible for the Company’s patents assets/portfolio.

In addition to the above, due to the Company’s unique position in the Chinese market through the Alcatel-Lucent Shanghai Bell (ASB) joint venture, Rajeev Singh-Molares, working with the chairman of ASB, will take on a dedicated role focusing on the transformation and development of Alcatel-Lucent’s commercial operations in China.

Alcatel-Lucent recently posted a net loss of €254mn for the second quarter on revenues of €3.545bn, with revenues for the Networks segment falling hardest by 9.9% annually to reach €2.23bn, while revenues for the S3 segment (software, services and solutions) fell 1.7% to €1.053bn, and revenues for the Enterprise business fell 1.5% to €191mn.

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