Alcatel Canada has chopped 480 jobs, which represents 12 per cent of its national workforce, on Wednesday. Two-thirds of the cuts will impact on its Ottawa operations.
Of the company's approximate 4,000 staff, 3,000 are at based out of the national headquarters located in Ottawa on March Road. Spokesman Ed Goffin said 300 of the cuts will occur there, thereby reducing the local workforce by about 10 per cent.
In June, Alcatel Canada closed its Gatineau plant, putting about 115 workers on the street. At one point the plant employed as many as 450, but in the past 18 months that figure fell to 150. Of the remaining staff, 35 were transferred to March Road.
"Layoffs are always the last resort, but market conditions demand we take action to keep costs in line with sales,” Goffin said.
He could not say what kind of charges will result from the restructuring or estimate to what degree the cuts will reduce costs. Alcatel Canada is a subsidiary of French telecom firm Alcatel. The company does not break down its balance sheets and fiscal reports to show the results from individual subsidiaries such as Alcatel Canada.
There are eight sales offices scattered across Canada in Vancouver, Toronto, Calgary, Regina, Winnipeg, Montreal, St. John and Halifax. Goffin said the other 180 job cuts are spread across those locations.
As for Ottawa, he said the cuts will occur in all areas. "All product lines are continuing. Nothing has been discontinued.”
The cuts follow the announcement last week by Alcatel in Paris that it would cut 10,000 jobs by the end of 2003, leaving it with 70,000 staff worldwide.
Over the past 18 months, Alcatel has already cut its global workforce by about 30 per cent to 80,000. As part of those cuts, the Canadian workforce was reduced to 4,000 from a high of 4,500 ― a reduction of about 11 per cent.
The cuts stem from the global slump that has battered other local heavyweights such as JDS Uniphase and Nortel Networks.
Last week Alcatel said the latest cuts are meant to reduce its break even point to quarterly revenues of less than four billion euros in 2003. The company is aiming to trim its operating loss for the second quarter by more than 100 million euros. That would leave the loss for the period around 240 million euros (US$237.6 million).
The latest job cuts are expected to generate additional restructuring charges for a total of US$1.18 billion in fiscal 2002 compared to a previous estimate half that amount.
The company said in a statement last week that softness in the market will result in a loss for the fiscal year. As recently as April, Alcatel was confident it would post an operating profit this year following the US$358 million operating loss it reported in 2001.
Employees affected by the reduction will receive separation packages and outplacement services, Alcatel Canada said.
Of the company's approximate 4,000 staff, 3,000 are at based out of the national headquarters located in Ottawa on March Road. Spokesman Ed Goffin said 300 of the cuts will occur there, thereby reducing the local workforce by about 10 per cent.
In June, Alcatel Canada closed its Gatineau plant, putting about 115 workers on the street. At one point the plant employed as many as 450, but in the past 18 months that figure fell to 150. Of the remaining staff, 35 were transferred to March Road.
"Layoffs are always the last resort, but market conditions demand we take action to keep costs in line with sales,” Goffin said.
He could not say what kind of charges will result from the restructuring or estimate to what degree the cuts will reduce costs. Alcatel Canada is a subsidiary of French telecom firm Alcatel. The company does not break down its balance sheets and fiscal reports to show the results from individual subsidiaries such as Alcatel Canada.
There are eight sales offices scattered across Canada in Vancouver, Toronto, Calgary, Regina, Winnipeg, Montreal, St. John and Halifax. Goffin said the other 180 job cuts are spread across those locations.
As for Ottawa, he said the cuts will occur in all areas. "All product lines are continuing. Nothing has been discontinued.”
The cuts follow the announcement last week by Alcatel in Paris that it would cut 10,000 jobs by the end of 2003, leaving it with 70,000 staff worldwide.
Over the past 18 months, Alcatel has already cut its global workforce by about 30 per cent to 80,000. As part of those cuts, the Canadian workforce was reduced to 4,000 from a high of 4,500 ― a reduction of about 11 per cent.
The cuts stem from the global slump that has battered other local heavyweights such as JDS Uniphase and Nortel Networks.
Last week Alcatel said the latest cuts are meant to reduce its break even point to quarterly revenues of less than four billion euros in 2003. The company is aiming to trim its operating loss for the second quarter by more than 100 million euros. That would leave the loss for the period around 240 million euros (US$237.6 million).
The latest job cuts are expected to generate additional restructuring charges for a total of US$1.18 billion in fiscal 2002 compared to a previous estimate half that amount.
The company said in a statement last week that softness in the market will result in a loss for the fiscal year. As recently as April, Alcatel was confident it would post an operating profit this year following the US$358 million operating loss it reported in 2001.
Employees affected by the reduction will receive separation packages and outplacement services, Alcatel Canada said.
