Alcatel Lucent today announced a series of cost-reduction initiatives aimed to save the company about $1 billion in 2009. In anticipation of a weak economy that may send the company’s 2009 revenue by up to 12%, Alcatel Lucent said that it expects to reduce the number of managers by approximately 1000 and the number of contractors by approximately 5000.
Additionally, the company said it will seek savings in real estate, support functions and discretionary spending. Partnering, co-sourcing and participating in the consolidation of the industry to reduce spending for WiMAX, CPE, classic core, non-IMS based fixed NGN portfolio and some legacy applications are also believed to decrease costs.
Alcatel-Lucent also announced a comprehensive shift in product strategy, which will now focus on a combination of “trusted capabilities of the network environment with the creative communications services of the web (Web 2.0, Web 3.0 and beyond).”
“This strategy requires providing an open environment, which does not exist today, where all these trusted capabilities can be available between the network and ‘over-the-top’ applications typical of Web 2.0,” the company said in a statement. “It is a challenge that Alcatel-Lucent is uniquely positioned to address, with its long-standing relationship with network-based service providers and thousands of enterprises worldwide, its capabilities in delivering fixed and mobile broadband, flat-IP networks and its end-to end integration capabilities around the globe.”
The new strategy will be aimed at three key markets – IP, Optical, mobile and fixed Broadband and Applications enablement, the company said.