Although Alcatel-Lucent announced 6,000 layoffs on Friday morning, the company's Ottawa facility is likely to play a key role in the "new" Alcatel.
Local employees at Alcatel, the former Newbridge Networks, were thankful because Ottawa provides the services that CEO Ben Verwaayen believes is the company's future: Internet-based communications, optical networks, and wireless.
"All of these markets we peruse are becoming more and more dependent on the web and our products are changing the way the web is used," Verwaayen said Friday.
About 2,500 people now work for Alcatel-Lucent's $1-billion Ottawa operation.
Although there are no details on where the cuts will happen, the Paris-based company has indicated 1,000 managers and 5,000 contract employees will be let go.
The measures are aimed at saving US$991 million by the fourth quarter of 2009 and the cuts are speculated to be spread across the board.
In a statement, Alcatel-Lucent says job cuts could help the company break even at the operating level next year, despite an expected eight to 12 per cent drop in the telecom market.
The company hasn't made a profit since it was formed through Alcatel's purchase of Murray Hill, New Jersey-based Lucent Technologies in 2006. More than 17,000 workers have been let go in the past two years.
With a report from CTV Ottawa's Paul Brent and files from The Associated Press
