French Government Tells Alcatel to Rethink Job Cuts
October 9, 2013 by Paul Ausick
The French Prime Minister said that the government wants to reduce the number of job losses in France, where Alcatel-Lucent said it would eliminate 900 jobs and replace another 900 employees through subcontracting arrangements or internal transfers. The government is asking the company to revise its plans, according to a report in The Wall Street Journal.
Firing people never has been easy (or cheap) in France, and a recently enacted law gives the government a role in approving job cuts at large companies like Alcatel-Lucent. The government last year delayed for months a layoff of more than 8,000 jobs at PSA Peugeot Citroën.
The most likely outcome of the planned Alcatel-Lucent job cuts is that restructuring costs will increase as the government and the unions force the company to pay more for the privilege of firing people.
Alcatel-Lucent shares opened up about 2% Wednesday morning, at $3.55 in a 52-week range of $0.91 to $4.02.
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