PARIS: Alcatel-Lucent’s strategic shift will result in workforce “adjustments,” said chief executive officer Michel Combes, who’s preparing to meet with unions in the coming weeks.

The French network-equipment vendor is planning departures, staff reallocations and hiring some people with skills it is missing, Combes said. The company announced the €1 billion (US$1.3 billion) cost-reduction plan on  20 June to stem losses.

“It’s clear that a €1 billion cost reduction will trigger labour adjustments in different countries around the world,” Combes said. “We need to see how we can reallocate competences and hire people with new competences. The plan will probably also mean a few departures.”

Alcatel-Lucent, which has 72,000 employees worldwide, outlined a three-year plan to sell more than €1 billion of assets and cut costs to return to profit after seven years of restructuring and two CEO changes failed to revive the company.

(Bloomberg)