Hot off the heels of its acquisition of networking specialist Xylan, Alcatel has announced it will cut 12,000 jobs over the next two years in a bid to streamline the company's changing business structure.
An Alcatel spokesperson claims the staff cuts are concentrated in the US and Europe and will have little to no effect on operations in Australia.
The cuts represent a change in Alcatel's core business focus, including a move into the carrier IP market, the spokesperson claims.
"The traditional industrial input [hardware manufacturing] is being halved every five years, while software development increases a percentage every two years," the spokesperson said.
The spokesperson claims that while Alcatel has already initiated 5000 of the 12,000 job cuts, one in every three redundancies will be offset by the recruitment of software engineers.
The staff cuts were announced with the presentation of Alcatel's 1998 results last week, which propose a Euro 300 million cost decrease to be achieved by 2001 as a result of the cuts.