Alcatel-Lucent made a loss of €243 million in Q2 and launched a new cost reduction programme aimed saving an additional €750 million.
Q2 revenues fell 7.1 percent year-on-year to €3.5 billion.
“It is clear … that we must embark on a more aggressive transformation,” said CEO Ben Verwaayen.
“We are therefore launching today The Performance Program to accelerate our transformation and reduce costs by €1.25 billion by the end of next year in order to keep ahead of market realities. These times demand firm actions.”
As part of this programme, A-L will cut 5,000 jobs, exit or restructure unprofitable managed services contracts and manage its patent portfolio as an independent profit centre.
The France-based vendor saw decline across all its business units and the principal geographies in which it operates.
Revenues at its network division fell 9.9 percent to €2.2 billion, where only sales of IP related products, particularly edge routers, registered growth.
The Software, Services & Solution division declined 1.7 percent to €1 billion, while the enterprise division saw 1.5 percent fall to €191 million.
Sales in Europe fell 15.6 percent, North America fell 8.3 percent and Asia-Pac fell 4.8 percent.
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