This job cut, according to company sources, was in response to business setback the merger suffered in the last quarter.
Lucent-Alcatel is touted as the largest network infrastructure supplier,, but instead boosting its net in the last quarter, it was awful.
The figure of 12,500, it was also gathered as being in excess of earlier projections with 3,500.
CNN reports that while presenting its provisional figures Alcatel-Lucent had already talked of implementing cost cutting measures in excess of those already planned.
Presenting the group's final balance sheet for the fourth quarter, the company announced weekend, that instead of only 9,000 it will during the next three years slash as many as 12,500 jobs.
These measures, according to the company's chief executive, Ms Patricia Russo, would help the group to save 1.7 in place of 1.4 billion euros.
Alcatel-Lucent employs some 80,000 people in 130 countries.
The group is the world's largest supplier of fixed-network technology and the world's second-largest supplier of mobile-network and Internet technology.
Alcatel-Lucent was focused "on supporting the overall transformation occurring in our industry," the group's CEO said.
"This includes the transformation of networks to all-IP, video and multimedia content to enhance communication services, broadband mobility as well as high value services," she added.
Sales of Alcatel-Lucent, which for the first time since the merger of the French company Alcatel and the United States (US)-based telecoms supplier, Lucent presented a quarterly balance sheet for the joint company, saw sales in the fourth quarter of the previous fiscal year drop quarter-on-quarter to 4.421 billion euros from 5.249 billion euros.
Additionally, sales revenue for fiscal 2006 as a whole dipped slightly in year-on-year terms to 18.254 billion euros from 18.574 billion euros.
The telco said that its operating profit in the fourth quarter plummeted quarter-on-quarter (q-on-q) from 566 to 21 million euros; instead of a net income of 381 million euros, this time around the company in the fourth fiscal quarter posted losses of 618 million euros.
In fiscal year, 2006, as a whole operating profit dropped y-on-y from 1.411 billion euros to 1.025 billion euros; net income shrank to 522 million euros from 1.674 billion euros.
In the fourth quarter Alcatel-Lucent reported an EPS loss of 27 eurocents, whereas in the same quarter of the year before there had been an EPS profit of 14 eurocents.
For the year as a whole Alcatel-Lucent posted earnings per share of 23 eurocents; for fiscal 2005 the equivalent figure had been 72 eurocents.
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