Alcatel-Lucent disputes local layoff rumours
By Roman Zakaluzny, Ottawa Business Journal Staff
Thu, Nov 22, 2007 2:00 PM EST
Rumours are emerging regarding Alcatel-Lucent's layoff plans in Ottawa.
Some 500 Alcatel-Lucent workers in Ottawa will be looking for new jobs by the end of December or by early January, sources close to the company have told the Ottawa Business Journal.
According to a source, the work the 500 staff perform – in departments such as payroll and finance –is being moved to the French-American company's operations in the United States.
Most of the Ottawa-based engineers and scientists will keep their jobs for the time being, the source continued, as Alcatel-Lucent restructures operations. Plans for the Ottawa operation have it remaining a research and development centre.
But company spokespeople in New Jersey dismissed the rumours, saying that no announcement of any specific cuts have been made for any of Alcatel-Lucent's 79,000 workers in 130 countries.
"The information is inaccurate," said Denise Panyik-Dale, a spokesperson for the firm. "We haven't announced anything specific in any specific location, anywhere."
"What we did announce was the 4,000 employees worldwide would be laid off by the end of 2009 when we announced our third quarter earnings."
In late October, the company announced the layoffs, Ms. Panyik-Dale said, a bid to save 400 million euros (US$578 million) by 2009. The 4,000 were in addition to 12,500 worldwide job cuts Alcatel-Lucent announced in February.
Third-quarter financial results showed losses of 258 million euros, compared to a profit of about 532 million euros a year earlier, and a sales drop of 11 per cent to 4.35 billion euros, due to an overall weakness in Alcatel-Lucent's wireless business.
"To say that 500 jobs will be gone in Ottawa is inaccurate," Ms. Panyik-Dale said again. "We can't speculate it's going to be in one place."
Morale at the 2,000-employee Kanata operation is low, claims the source, and getting worse week by week with between three and five employees getting pink slips every Thursday since mid-summer.
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Thu, Nov 22, 2007 2:00 PM EST
Rumours are emerging regarding Alcatel-Lucent's layoff plans in Ottawa.
Some 500 Alcatel-Lucent workers in Ottawa will be looking for new jobs by the end of December or by early January, sources close to the company have told the Ottawa Business Journal.
According to a source, the work the 500 staff perform – in departments such as payroll and finance –is being moved to the French-American company's operations in the United States.
Most of the Ottawa-based engineers and scientists will keep their jobs for the time being, the source continued, as Alcatel-Lucent restructures operations. Plans for the Ottawa operation have it remaining a research and development centre.
But company spokespeople in New Jersey dismissed the rumours, saying that no announcement of any specific cuts have been made for any of Alcatel-Lucent's 79,000 workers in 130 countries.
"The information is inaccurate," said Denise Panyik-Dale, a spokesperson for the firm. "We haven't announced anything specific in any specific location, anywhere."
"What we did announce was the 4,000 employees worldwide would be laid off by the end of 2009 when we announced our third quarter earnings."
In late October, the company announced the layoffs, Ms. Panyik-Dale said, a bid to save 400 million euros (US$578 million) by 2009. The 4,000 were in addition to 12,500 worldwide job cuts Alcatel-Lucent announced in February.
Third-quarter financial results showed losses of 258 million euros, compared to a profit of about 532 million euros a year earlier, and a sales drop of 11 per cent to 4.35 billion euros, due to an overall weakness in Alcatel-Lucent's wireless business.
"To say that 500 jobs will be gone in Ottawa is inaccurate," Ms. Panyik-Dale said again. "We can't speculate it's going to be in one place."
Morale at the 2,000-employee Kanata operation is low, claims the source, and getting worse week by week with between three and five employees getting pink slips every Thursday since mid-summer.
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Labels: Alcatel-Lucent, Canada, layoffs, Ottawa
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