10,000 more to go at Alcatel

NEWS Alcatel will cut a further 10,000 European jobs in 2002 as it fights to stay afloat in a depressed telecoms market. The French telecoms equipment manufacturer has already slashed 23,000 employees this year, out of a total of 110,000. Investors reacted positively to the news, with the share price climbing five per cent in trading today. However, Alcatel warned that while an upturn in fortunes is on the way, the industry's prospects for the immediate future are bleak. Further job cuts expected at Alcatel as it plans to further reduce its fixed costs by 20 per cent in the coming months. The company restructuring will add another E1.2bn (£750m) in provisions to this year's results. Losses are expected to hit the E5bn (£3.1bn) mark.