Alcatel-Lucent has announced plans to change its operating structure to help the company achieve its Performance Programme, through which it hopes to save €1.25 billion in costs by the end of next year.

The France-based vendor said the new model will see it focus on a strengthened sales organisation, with tendering and sales due to be optimised in a single global sales operation.

A-L also plans to focus more on its core products and profitable markets, while continuing its investment in innovation, research and development.

In July, the company announced that it made a loss of €243 million in Q2 and planned to cut 5,000 jobs.

The new operating model will also include a series of management changes.

From January 1 next year, chief financial officer Paul Tulano will also become A-L's chief operating officer, with worldwide responsibility for supply chains, procurement, enterprise, strategic industries and sub-marine interests.

Stephen A Carter will become president for managed services and EVP of corporate restructuring.

Robert Vrij is to be made president for global sales and marketing, leading a single global sales organisation, while Philippe Keryer will become president of networks and platforms.

The new networks and platforms group led by Keryer is designed to replace the existing regional operating structure, and is made up of four global product and services business units, focusing on core networks, fixed networks, wireless, and platforms.

A-L CEO Ben Verwaayen commented: "The objective of the new operating structure is to strengthen Alcatel-Lucent's presence in key telecommunications products and services through a unified business group."

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