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Lucent to cut more staff
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July 12, 2001: 2:42 p.m. ET
Telecom equipment maker to make another round job cuts, announce in Sept.
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NEW YORK (CNNfn) - Lucent Technologies confirmed Thursday that 8,500 employees accepted voluntary retirement packages and more reductions may be on the way.
With the acceptances, Lucent is well on its way to meeting the 10,000 job cuts announced earlier this year.
"We are very pleased with our acceptance rate," a Lucent spokesman said. "This offer enabled us to accelerate our restructuring but give eligible employees the opportunity to leave business with added benefits."
Murray Hill, N.J.-based Lucent (LU: up $0.80 to $6.85, Research, Estimates), which had 104,000 employees at the end of March, anticipates making more reductions but does not know the total amount. Lucent will unveil the next round of cuts at the end of the current quarter in September, the spokesman said.
"We have to work through the process," the spokesman said.
Lucent shares, which have dropped more than 90 percent from their 52-week high of $67.18, surged by nearly 14 percent Thursday in afternoon trading.
So far, Lucent has cut 18,500 positions, a spokesman said.
Lucent must still sell its fiber optic unit, that will cut its payroll by another 6,000 people, and still plans to chop 6,000 contract employees, he said.
Earlier this week, Lucent took another step in its restructuring by announcing it will split into two main operating units and plans to cut 30 percent of top management.
In January, the troubled telecom equipment maker said it would cut 10,000 jobs -- about 8 percent of its work force -- and take a charge of up to $1.6 billion as part of a major restructuring meant to cut costs. In June, Lucent said it will offer early retirement packages to more than 10,000 U.S.-based employees as part of its effort to cut costs.
The buyout packages were offered to management employees, ranging from entry-level clerical workers to mid-level executives. Lucent is reportedly set to cut 10,000 more jobs when it announces third-quarter results later this month.
Lucent will give a report on the reductions and their financial impact when it announces third quarter results July 24. 
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