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Monday, 7 May, 2001, 08:12 GMT 09:12 UK
Lucent dumps finance officer
Lucent logo
Lucent looks inward for new financial direction
Struggling telecoms equipment-maker Lucent Technologies has ousted its chief financial officer Deborah Hopkins, the high-profile executive it poached from Boeing last year.

Under Ms Hopkins, who was paid a $4m bonus for joining in April 2000, the company has reported massive losses, seen its stock drop 82% and announced 10,000 job cuts.

Lucent said Ms Hopkins "is leaving the company to pursue other opportunities". It would not comment further.

Company insider Frank D'Amelio has been named as her replacement to oversee the company's restructuring.

Lucent's problems

Ms Hopkins joined Lucent just a few months after its financial woes were revealed.

She had been credited with helping Boeing rebound from its first loss in 50 years in 1997 and refocus the company on its core business.

Although Ms Hopkins helped Lucent negotiate $6.5bn in new financing in February, investors remained concerned and forced the company to deny rumours it would file for bankruptcy protection in early April.

Credit rating agencies had also warned they might cut Lucent's rating to junk status.

The company posted a second quarter loss of $3.7bn but some analysts think there has been some stabilisation of it debts.

Lucent has been selling or spinning off various businesses, such as its optical components and corporate telephone network businesses, to reduce its debts.

Lucent said Mr D'Amelio, formerly president of its Switching Solutions Group, has both the financial and operational expertise the company needs during the next phase of its restructuring.

Lucent now has a CFO "who understands everything from our finances to our photons. He has the balance sheet view and the broadband view," said a spokesman.

Mr D'Amelio began his career at Bell Laboratories, the well-regarded research and development arm of Lucent, in 1979.

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