Lucent announces $1 billion loss, layoffs

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.

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This story, "Lucent announces $1 billion loss, layoffs" was originally published by Network World.

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