When Alcatel-Lucent (NYSE:ALU) merged last year, creating the world's biggest maker of telecommunications equipment, it said it would slash 9,000 jobs. Now, the company said the number of workers who will lose their job would be 12,500, or 16% or its workforce.
Not surprising, French unions have called for a strike on Feb. 15 to protest the job cuts. Now this could get ugly as Alcatel-Lucent also (surprisingly) announced today that the 2006 dividend will be 16 cents, giving shareholders a dividend yield of 1.1%.
The company also reported -- what Alcatel-Lucent CEO Russo called -- disappointing results, posting a net loss of €618 million ($802.84 million) for the three months ending Dec. 31, compared to a profit of €381 million the previous year. The company expects revenue for 2007 to rise by about 5%.
After rising 4.43% in yesterday's session, ALU shares continued to rise in Paris, gaining 2.8% on the cost cuts and dividend announcement. However, here ALU shares are down 2% in pre-market trading.
Alcatel-Lucent cuts 12,500 jobs ... but pays dividend
Posted Feb 9th 2007 9:12AM by Melly Alazraki
Filed under: Before the bell, Major movement, Earnings reports, Lucent Technologies (LU), Alcatel-LucentADS (ALU)
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Reader Comments (Page 1 of 1)
3-21-2007 @ 3:30PM
Paul Tiramasu said...
The first person the company should lay off is Patrica Russo,she is the prime example of the peter principal. I worked for her at at@t in the new york area, nice lady but way over her head now. The stock will price will stay dormant as long as she is at the helm. The french use to say off with her head