Alcatel-Lucent (NYSE:ALU) might need to lay off thousands more workers in an effort to match rivals that operate more efficiently. In a report today, Bloomberg estimates that the company could need to cut another 10,000 jobs, in addition to the 5,500 cuts announced last month.
Last Friday, the company reported earnings as well as provided a progress update on its ongoing restructuring plan. Of its 1.25 billion-euro restructuring plan, it has achieved 450 million euros of savings so far this year. Alcatel-Lucent still needs to cut additional costs, as its selling and administrative expenses (which include payroll) as a percentage of revenue are notably higher than its competitors'.
CEO Ben Verwaayen said previously that the company remains focused on its core operating business and will continue investing in R&D and innovation. The 5,500 job reductions that have been announced so far should be completed by the end of 2013.
Evan Niu, CFA, has no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.