March 14, 2001, 4:29 PM — That loud crunching noise you heard yesterday was the Good Ship Lucent slamming into a financial iceberg.
The company said it lost a little over $1 billion in its first quarter and will cut some 10,000 jobs out of its over 106,000 member workforce. In addition, the monster telecom equipment maker said it would reduce $2 billion worth of expenses by cutting jobs, eliminating some product lines and outsourcing other functions.
One analyst told Reuters they were "encouraged" by the breadth of Lucent's actions but more ominously said: "People are going to be amazed at the depth of the problems." Not sure if we here at NetFlash are so surprised. The company has been falling behind its competition in hot markets such as optical networking and switching for a couple years now. Then last fall, Chairman Richard McGinn was forced out. Now, the takeover rumors are likely to start hot and heavy again.
As happens so often with companies in trouble, the turmoil also might mean that the firm could lose contact with customers and services could suffer. Not a good way to start the year. For more information click here.
Taking aim at multinational corporations trying to tie up their existing business channels, IBM this week released a new version of its WebSphere Commerce Suite.
Microsoft has agreed to pay Sun $20 million as part of an agreement to settle a bitter, 3-year legal battle over its use of Sun's Java programming language.
Efforts to move Linux more into business and commercial markets and bolster the numbers of computers that can be connected to a network are some of the first projects that programmers will focus on at the new Open Source Development Lab, which opens this week in a suburb of Portland, Ore.
Microsoft confirmed that most of its online properties became unreachable Wednesday morning due to a problem in the system that maps Web addresses to IP addresses.