Monday, September 10, 2012

Alcatel-Lucent's Restructuring Seeks to Simply Operating Model

Alcatel Lucent announced the next steps in its on-going restructuring with the goal of focusing on profitable markets and customers around the world.

"In today's markets it makes sense to play to your strengths. Alcatel-Lucent’s leadership in core networking, reflects our innovation excellence and long-standing customer relationships.   The objective of the new operating structure is to strengthen Alcatel-Lucent’s presence in key telecommunications products and services through a unified business group," stated Ben Verwaayen, Chief Executive Officer.

The following changes were announced:

  • Paul Tufano becomes Chief Operating Officer, with worldwide responsibility for Supply Chain, Procurement and three individual focused businesses (Enterprise, Strategic Industries and Submarine), in addition to his current role as Chief Financial Officer.
  • Robert Vrij becomes President Global Sales & Marketing, leading a single global sales organization to oversee and manage all customer-facing commercial relationships.
  • Stephen A. Carter becomes President Managed Services & EVP Corporate Restructuring; overseeing the Performance Program and Corporate Marketing & Corporate Communications.
  • Philippe Keryer becomes President of Networks & Platforms. This worldwide business group will replace the existing regional operating structure with four global product & services business units, each with full P&L responsibility, comprising:
  • i. Core Networks, leveraging global leadership in IP and Optics; IP and Optics will be placed under the management of Basil Alwan leveraging Alcatel-Lucent’s leadership position in both of these fast growing markets.
  • ii.  Fixed Networks, investing further in the Company’s leadership position in this market and the synergies with Small Cell deployment.
  • iii. Wireless, focusing customers in North America, China and EMEA.
  • iv.  Platforms, evolving the company’s High Leverage Network capabilities into unified software platforms for control, optimization and network analytics.
  • George Nazi remains President of the previously created Global Customer Delivery division.
  • Jeong Kim remains President of Bell Labs and Chief Strategy Officer and will be responsible for the Company’s patents assets/portfolio.
  • In July 2012, Alcatel-Lucent announced 5,000 job cuts as part of an accelerated restructuring program.

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