17 Jun 2002
French optical components maker announces poor results and job cuts in the UK, France and US.
Alcatel Optronics' sales for the third quarter were down year-on-year by 24% to USD 95 million, while income from operations has suffered a USD 10 million loss. In response to these poor results, Alcatel has announced a range of cost-cutting measures.
The company plans to cut 90 jobs at its site in Livingston, UK. These losses represent nearly half the workforce at the site which until last month was owned by start-up company Kymata. Alcatel Optronics also plans to cut 70 jobs in North America and by the end of December 2001, the company's total workforce will total fewer than 2,000 employees.
Staff at its Lannion and Nozay sites in France have also been offered early retirement and part-time employment.
"Third quarter was characterized by a steep drop in our revenues. Our 'breakeven barrier' was crossed and our margins therefore adversely impacted," said Jean-Christophe Giroux, CEO of Alcatel Optronics. "Nearing the end of the year, we can now say with some degree of confidence that for the full year 2001 we should see mid, single-digit top line growth."