Lucent Technologies has said that it is planning to cut 7,000 jobs before the end of this year in a cost cutting move designed to save the company around $700 million per year. The job cuts will reduce the number of employees working for Lucent to 46,000. Lucent employed around 106,000 workers last year.
The announcement of job losses followed the release of Lucent’s financial figures for Q3. Lucent posted revenues of $2.95 billion in Q3 compared with $5.89 billion in the corresponding quarter last year. The company also posted a loss of $7.91 billion in Q3 compared with a loss of $3.24 billion in Q3 2001. Lucent blamed its ninth straight quarterly loss on the prolonged downturn in the telecommunications sector. The company believes that it will make a return to profitability in late fiscal 2003.