Lucent Restructures To Reinvigorate Sales
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On the heels of positive news Monday that Murray Hill, N.J.-based Lucent Technologies cut two multi-million dollar deals, the down-on-its-luck telecommunications equipment maker Tuesday said it will reorganize its business structure into two segments in order to reinvigorate sluggish sales.
In an internal memo, Lucent told employees that over the next few weeks it will divide its business along wireline and wireless lines, with the Integrated Network Solutions group (wireline) to serve the Regional Bell Operating Companies (RBOCs), long-distance and emerging carriers and backbone companies. The Mobility Solutions group (wireless) will be aimed at wireless carriers like AT&T Wireless, Japan's NTT DoCoMo and Cingular Wireless.
The company is also focusing on major service providers, like the one's above, as exemplified by the deals sealed Monday.
"The major service providers that we sell to have aligned themselves around these market segments," said Mary Lou Ambrus, vice president, External Communications and Information, Lucent. "What this structure will allow us to do is improve our responsiveness to customers, speed decision making, and it creates a leaner, more streamlined business."
Ambrus did not comment on the possibility of further staff reductions down the road, noting, "All we have announced is what we announced in January."
In January, the company cut 10,000 jobs following a fiscal year-end loss of $1.02 billion.
However, in June, the company offered more than 10,000 management employees an early retirement package. The offer ends Tuesday.
"We've had a very good take," Ambrus said, referring to the offer. "We'll know better after the close of business today."