NEW YORK, July 26 -- Lucent Technologies Inc. is cutting 20,000 jobs and is eliminating its dividend in a bid to return to profitability. The job cuts were announced as the company posted a fiscal third-quarter loss of $3.25 billion, far wider than expected. Lucent also is selling its fiber optics operations to Furukawa Electric Co. and Corning Inc.
The job cuts and other changes are a second phase of the company's restructuring plan. The goal, according to Lucent, is "a new go-to-market business model that reflects a leaner, more customer-focused company." Lucent will be organized around two major segments -- Mobility Solutions and Integrated Network Solutions -- that the company says will reflect the way major service providers make purchases and are organizing themselves.
Lucent has experienced slumping sales as it lost business to competitors that brought faster, new telecommunications gear to market quicker. The national economic slowdown has added to Lucent's problems, as many customers have cut back on spending and others who owe the company for equipment have filed for bankruptcy.