Alcatel Lucent SA (ADR) (NYSE:ALU) CEO Motivates In A Different Way
In what seems to be a message intended to shock its 72,300 employees into action, CEO Michael Combes of France based Alcatel Lucent SA (ADR) (NYSE:ALU) has been quoted as saying that Alcatel Lucent SA (ADR) (NYSE:ALU) could disappear as a company if the struggling telecommunications services and hardware provider does not succeed in implementing a turnaround. He is credited to have made this statement when explaining the rationale behind the impending job cuts to its employees.
As per a turnaround roadmap unpopularly know as Combes’ program, close to 10,000 workers would be sent home to bring down costs and achieve efficiencies in operations. Of these identified numbers close to 900 positions will be cut in France. France among the European Union countries has very strict labour laws with the work force leaning towards a socialist bent of mind. Hence reduction in workforce plans has invited widespread condemnation from workers and government functionaries alike. Close to 1500 employees of Alcatel Lucent SA (ADR) (NYSE:ALU) surround the office complex and demonstrated against this move in Paris on October 14. Some analysts believe that these measures are too small and too late since the Franco American company has been bleeding since 2006.
In order to defend the management decision, Combes was dragged in front of a parliamentary hearing. He was made to explain to the French law makers how his revival plans were different from the previous 6 attempts his predecessors had launched to guide the company out of the danger. It is believed that he has given his personal commitment to find new work places for the workers who will lose their jobs at Alcatel Lucent SA (ADR) (NYSE:ALU). He has also been compelled to offer an oil branch to the workers union to negotiate a solution which will be acceptable to the company, employees and the government. Analysts believe that Alcatel Lucent SA (ADR) (NYSE:ALU) is on slippery ground in France since any adverse and unilateral move by the telecom company will instigate the government to block its exit by invoking stringent labour laws of the country.