Lucent Restructures To Reinvigorate Sales

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.”

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