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| Fifth Column |
| Russo ready for action - Layoff most US Lucent empl. as harder to fire French Alcatel workers |
| 2006-04-05 |
| Patricia Russo, who eliminated 30,000 jobs at Lucent Technologies Inc., says she will move quickly to reduce the work force when she takes over as head of Alcatel SA after the French company’s $13.4 billion purchase of the biggest U.S. phone-equipment maker. “We clearly intend to have speed as our bias,” Russo said on a conference call after Sunday’s announcement of the sale to Paris-based Alcatel, where she will become CEO. Russo aims to save $1.7 billion after three years at the enlarged phone equipment company. Russo plans to eliminate 10 percent of the combined staff, or 8,800 jobs. She’s already reduced the work force by 50 percent at Murray Hill, N.J.-based Lucent. The turnaround experience may help her boost earnings at the new company, whose products range from phone gear to networking and broadband devices, executives said. “She had great learning from a difficult and complex challenge when she took over Lucent,” said Fred Hassan, chairman and CEO of Schering-Plough Corp. Russo sits on the Kenilworth, N.J.-based drugmaker’s board. “Some of those turnaround experiences are greatly helpful when you do a merger.” Russo closed factories and offices at Lucent. Pacific Crest Securities analyst Tim Daubenspeck said she may follow the same recipe this time and close plants in the U.S. first. The combined company will be based in Paris, and Russo may have a tougher time shuttering locations there quickly due to stringent labor laws, he said. [..] |
| Posted by:3dc |
| #12 Not that HBS is my favorite source of wisdom on competing in open markets, mind you ..... |
| Posted by: lotp 2006-04-05 21:51 |
| #11 Rather, thank an arrogance bred of a long monopoly position. The AT&T leadership - and that includes research leadership - never came to grips with having to compete in an open market. |
| Posted by: lotp 2006-04-05 21:46 |
| #10 Thank Harvard Biz School and the U of Chicago Biz school. Traitors both of them. |
| Posted by: 3dc 2006-04-05 21:43 |
| #9 You mean Bell Labs of the transistor, Apollo program, lasers, etc. That Bell Labs is long gone. Most of the sites have been closed and the work moved off-shore. Thank Russo and her predecessor McGinn for that. |
| Posted by: AJackson 2006-04-05 21:31 |
| #8 You mean Bell Labs? The guys who discovered the universe is actually expanding? And it gets sold to the frogs and there's no national outcry? No wonder they give those companies such oxymoronic names. |
| Posted by: Nimble Spemble 2006-04-05 20:25 |
| #7 What did Lucent used to be before it got a name with no meaning? lu·cent   adj. - 1. Giving off light; luminous. 2. Translucent; clear. |
| Posted by: Zenster 2006-04-05 18:48 |
| #6 What did Lucent used to be before it got a name with no meaning? Merely one of the most illustrious telecom R&D labs in all history. You know, that place where the transistor was invented. In February 1996, the soon-to-be-spun-off systems and technology unit of AT&T renamed itself Lucent Technologies and launched its separation with an initial public offering of stock issued in April 1996. The spin-off was completed in September 1996 when AT&T distributed its shares of Lucent to AT&T shareholders. |
| Posted by: Zenster 2006-04-05 18:45 |
| #5 And the shareholders will have a fun time selling their shares on the Paris Bourse. What did Lucent used to be before it got a name with no meaning? |
| Posted by: Nimble Spemble 2006-04-05 17:46 |
| #4 No surprise. Lucent US market share has been going down for a while. Have fun with the fwench labor laws sweetie! |
| Posted by: DarthVader 2006-04-05 17:33 |
| #3 Shipping jobs overseas. |
| Posted by: Nimble Spemble 2006-04-05 13:39 |
| #2 I don't think we'll see Patty on food stamps anytime soon... Cash Compensation (FY September 2005) Salary $1,200,000 Bonus $3,550,000 Latest FY other short-term comp. $114,430 Latest FY other long-term comp. $3,415,410 Latest FY long-term incentive payout $0 Total $8,279,840 As for her employees, well... |
| Posted by: tu3031 2006-04-05 13:20 |
| #1 I will not knowingly buy their chipsets or gear anymore either. |
| Posted by: SPoD 2006-04-05 13:15 |