Lucent Technologies, the No. 1 U.S. maker of phone equipment, may slash thousands of additional jobs to trim expenses amid slack demand for telecommunications gear, analysts said.
The company plans to eliminate as many as 10,000 positions, the Wall Street Journal reported Wednesday. Lucent spokeswoman Mary Lou Ambrus declined to comment on the report or whether the company would make further reductions.
Lucent is eliminating 10,000 jobs and shedding 12,000 other positions by selling factories and its optical fiber business. Confident that Lucent would reach the goal of trimming $2 billion in annual expenses by the end of its fiscal year Sept. 30, Chief Executive Henry Schacht this month said the company will accelerate cost cutting.
"It's an action of the appropriate scale," Sanford C. Bernstein & Co. analyst Paul Sagawa said. "Every company in this business that wants to survive needs to have a cost structure that can let them be profitable and generate cash at a much lower revenue base."
Lucent shares fell 13 cents to $5.87 and are down 89 percent in the past year.
The company lost more than $4 billion in the first half of its fiscal year.