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Alcatel cuts 150 more local jobs
By Ottawa Business Journal Staff
Thu, Dec 4, 2003 8:00 AM EST
French telecom equipment giant Alcatel announced additional job cuts on Wednesday, including another 150 in Ottawa that add to the 110 disclosed in October.
The cuts announced Wednesday affect 900 staff worldwide and are part of an extensive restructuring that has been ongoing for two years.
In early fall Alcatel still reported a global workforce of 75,000, but its restructuring plan calls for it to finish the year with only 60,000.
The cuts in Ottawa will reduce the staff to around 1,750. During the height of the tech boom in 2000, Alcatel's local workforce was in access of 4,000.
The latest cuts hit local staff working in Alcatel's fixed-line communication division. This is the division that has been hardest hit by the downturn in equipment spending by phone companies. On the other hand, Alcatel's products for high-speed Internet have been doing well. This business includes the Digital Subscriber Line products that are the Canadian operation's hallmark.
Company spokeswoman Amy McLeod said the cuts were spread across the local operation and did not result in any product lines being discontinued. She added that the layoffs are to keep costs in line with revenues.
The layoffs follow closely on the heels of the 110 local job cuts announced in October as Alcatel Canada outsources all of its remaining manufacturing operations. That move will see the 140,000-square-foot manufacturing plant at 349 Terry Fox Dr., as well as 96,000 square feet of office space put up for sublease on Jan. 1. All of Alcatel's remaining workforce is being consolidated at its flagship March Road campus.
Alcatel also cut about 60 local R&D staff in May.
By Ottawa Business Journal Staff
Thu, Dec 4, 2003 8:00 AM EST
French telecom equipment giant Alcatel announced additional job cuts on Wednesday, including another 150 in Ottawa that add to the 110 disclosed in October.
The cuts announced Wednesday affect 900 staff worldwide and are part of an extensive restructuring that has been ongoing for two years.
In early fall Alcatel still reported a global workforce of 75,000, but its restructuring plan calls for it to finish the year with only 60,000.
The cuts in Ottawa will reduce the staff to around 1,750. During the height of the tech boom in 2000, Alcatel's local workforce was in access of 4,000.
The latest cuts hit local staff working in Alcatel's fixed-line communication division. This is the division that has been hardest hit by the downturn in equipment spending by phone companies. On the other hand, Alcatel's products for high-speed Internet have been doing well. This business includes the Digital Subscriber Line products that are the Canadian operation's hallmark.
Company spokeswoman Amy McLeod said the cuts were spread across the local operation and did not result in any product lines being discontinued. She added that the layoffs are to keep costs in line with revenues.
The layoffs follow closely on the heels of the 110 local job cuts announced in October as Alcatel Canada outsources all of its remaining manufacturing operations. That move will see the 140,000-square-foot manufacturing plant at 349 Terry Fox Dr., as well as 96,000 square feet of office space put up for sublease on Jan. 1. All of Alcatel's remaining workforce is being consolidated at its flagship March Road campus.
Alcatel also cut about 60 local R&D staff in May.
