Alcatel Lucent Continuous Restructuring – CEO Warning Signal


Telecom bubble burst impacted Alcatel Lucent more negatively than any of its peers. The emergence of Chinese competitors such as ZTE and Huawei added to its wounds and pressurized to sell premium products as commodity product. Post merger with Lucent Technologies and subsequent restructuring processes are not dying out. One after another assets sell out to human capital realignment is not helping company to push itself back to profitability. The other competitor’s are using Alcatel-Lucent’s focus, surrender; refocus back on strategic and tactical basis as confusing state of direction for the potential customer and snatching customer from Alcatel-Lucent with bare minimum effort. During last restructuring, the company decided to focuses on IP domain especially Mobile Broadband segment by leveraging some of the stand out product innovations. Few weeks back, Alcatel-Lucent came out with another round of restructuring and announced 10000 job cuts in which 900 would be from France. As one of the most vocal advocator for its citizen, even the President of France came out strongly and objected on the proposed layoff in France. It triggered protest and amidst of that the respectable CEO during an Radio Interview sent warning to all and suggested that for survival; it is unavoidable for Alcatel Lucent to sit tight without action otherwise it risk of disappearance. I feel sorry for Alcatel Lucent shareholders as they deserve the protection of their investment instead of that the virtual roadblocks are trying to be developed which may in turn would be disastrous for shareholders as well as employees. What if Alcatel Lucent go under lockout and in that scenario what would be the French Union take on the protection of their citizen job. I strongly believe that innovation driven company like Alcatel Lucent must survive to keep on bringing in innovation at the hand of many.

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Visionary Leader with 22 years of multi-functional experience - combine astute tactical, strategic, business, technology and industry skills in ICT domain at domestic and international level (Wired/Wireless/ networks /platforms/ connected device) .... More

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