New Operating Model to Transform Alcatel-Lucent

September 21, 2012—Alcatel-Lucent (France) has unveiled a new performance program with a focus on core products to help turn around the company. After announcing staff layoffs of 5,000 people in July, the new operating model follows as part of the company’s promise to cut €1.25 billion from its bottom line by the end of 2013.
               
According to the company’s press release, chief executive officer Ben Verwaayen commented: “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. A streamlined executive committee will oversee the simplified business model, with a newly-appointed chief operating officer focused on executing operational improvements."
 
The plan involves a slew of management changes, effectively reducing layers. As of January 1, 2013, chief financial officer Paul Tufano will add chief operating officer to his duties, with global responsibility for supply chain and procurement as well as the businesses of enterprise, strategic industries, and submarine. 
 
Sales will be aggregated into a single global organization overseen by new global sales and marketing president Robert Vrij.
 
The core product focus of the company will be directed to four areas: core networks, which includes the fast-growing segments of IP and optics; fixed networks, which includes small cell deployment; wireless; and platforms.