Lucent takes hatchet to senior management

NEWS Lucent is set to restructure itself - again - and this time, the heads of many of its top brass are on the chopping block. The latest reorganisation will see Lucent split into just two divisions, one selling kit to wireless operators, and one to the more traditional wireline companies. This morning's FT reports that the split is designed to mirror similar moves among Lucent's customer base. Many telcos are in the process of spinning off their wireless operations. Henry Schacht, chairman of Lucent, inherited 11 divisions when he took on the job last autumn. Reducing that to two will clearly result in some serious management pruning. Indeed, nearly a third of the company's 350 most senior execs and corporate officers are expected to go. The first major casualty is Jeong Kim, head of Lucent's optical networking division. The company aims to reduce overall headcount by 10,000 this year. It has offered many of its managers an early retirement deal in the hope of getting a further 5,000 off the payroll, and has been preparing for more cuts, according to the FT.