Alcatel introduces “Shift Plan” to redefine Its Industrial Identity
To address the explosive growth in bandwidth-hungry data traffic and to focus on the fast- growing business segments of IP Networking, Cloud technologies and Ultra Broadband Access, Alcatel-Lucent has announced regarding a three-year plan The Shift Plan. The plan will help to mobilize the full range of Alcatel-Lucent’s assets and resources to achieve a decisive shift in the Group’s industrial focus that will concentrate the Company on the priorities of its telecommunications customers. This new focus will be delivered by a management team organized around full profit-and-loss (P&L) and cash accountability.
The Shift Plan will capitalize on Alcatel-Lucent’s recognized innovation assets, particularly its research laboratories, Bell Labs, while equipping the Company with the appropriate means to fulfil its ambitions.
Michel Combes, CEO Alcatel-Lucent, said, The Shift Plan is fundamentally an industrial plan that also addresses the Group’s operational and financial challenges by putting in place a strong and fully accountable leadership team with clear goals and the appropriate levers to deliver on these goals and on our commitments to all stakeholders.
Michel added, With the Shift Plan, which is designed to be self-funding, we are aligning realistic and deliverable ambitions with our core competencies. Over the next three years, we are targeting Euro 1 billion of fixed costs savings, and carefully defined and timed asset sales expected to generate at least an additional Euro1 billion.
Under The Shift Plan, Alcatel-Lucent is planning to grow its revenues in Core Networking by more than 15%, from Euro 6.1 billion in 2012 to over Euro 7 billion in 2015, while lifting its operating margins in this segment from 2.4% in 2012 to more than 12.5% in 2015.
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