10,000 People To Lose Their Jobs At Alcatel Lucent SA (ADR) (NYSE:ALU)
Alcatel Lucent SA (ADR) (NYSE:ALU) has been struggling to keep its head above water for a long time now. The company announced that it will be laying-off 15% of its workforce, globally. It has faced some mixed reactions from investors and French officials are also now on the scene and are saying that they will be trying to tone down that move.
On Tuesday, the company said that the 10,000 employees across the globe will be shown the door by 2015 end and it will be downsizing 50% of its business-hubs. The company says that it is in efforts to train the spotlight on just a handful of businesses and technologies. The company will also be relocating its headquarters to a cheaper location. Currently, it occupies office space at the base of the Eiffel Tower.
It is anticipated that all these cuts are going to hit France the hardest. The company is planning on downsizing the workforce there by 900 employees and 900 more may be outsourced or shifted internally.
Tuesday’s trading session
In Tuesday’s trading, Alcatel Lucent SA (ADR) (NYSE:ALU) dropped by 9.35%. The shares opened at a price of $3.86, which climbed to an intraday high of $3.90 and dipped to a close of $3.49. Approximately 74.37 million shares were traded on Tuesday while an average volume of 23.07 million shares were traded over a 30 day period. The 52-week low of Alcatel Lucent SA (ADR) (NYSE:ALU) is $0.91 and its 52-week high is $4.02. The company has a market capitalization of $7.93 billion.
About the company
The France-based Alcatel Lucent SA (ADR) (NYSE:ALU) offers solutions that are used by businesses, service providers and governments across the world, to offer video, data and voice services to their customers. It is also involved in fixed, IP and mobile and optics-technologies, services and applications. It operates in 3 business segments: 1) Networks; 2) Software, 3) Services, Solutions & Enterprise.