Lucent restructures business

Lucent restructures into two new units

Lucent Technologies, the struggling US telecoms equipment company, has said that it will lay off 30% of its top management in a move to restructure the company.

It will also split into two main operating units - landline and wireless - in a bid to restore its fortunes.

"We're creating a leaner, more streamlined business that matches the way our customers are buying from us," Lucent spokesman Bill Price said.

According to CNNfn, the job cuts will come from 350 senior executives and are expected to be announced next month.

The restructuring will also involve the retirement of a senior division chief, Mr Price added.

Hit hard

The sharp US slowdown and the collapse of many dot.com companies that had bought equipment on credit have hit Lucent hard.

The company posted posted $4.7bn in losses during the first half of its fiscal year.

The landline group will serve long-distance carriers, Baby Bells, emerging carriers and backbone companies like Global Crossing.

The second group will serve wireless service providers such as AT&T Wireless Group.

10,000 cuts

In June, Lucent said that it would offer early retirement packages to more than 10,000 employees.

The redundancies were part of efforts to cut costs.

Earlier in the summer, Lucent abandoned merger talks with France's Alcatel.