Alcatel is forecasting a slump for the telecoms industry and its sales to fall between 25 per cent and 30 per cent in the next quarter.
Europe's biggest telecommunications equipment maker is reporting a €1.12 billion net loss for the fourth quarter of 2002, down from a loss of €1.5 billion the previous year.
Chairman Serge Tchuruk blames the losses on an industry slump that he expects to affect the company into early next year. He says weak demand combined with a weakening dollar will lead the telecommunications equipment market to fall by a further 15 per cent in 2003.
Alcatel has announced plans to reduce its worldwide staff to 70,000 by the end of 2003 - from 110,000 at the end of 2000.
Alcatel, which makes digital subscriber line products that turn conventional copper phone wires into high-speed Internet gateways, made an operating profit of €20 million in the last quarter of 2002.
It was a strong improvement from the €368 million loss Alcatel posted in the fourth quarter of 200. For the full year, Alcatel's net loss was €4.75 billion, compared with €4.96 billion in 2001. Analysts had anticipated an operating loss of €751.6 million for 2002.
Alcatel Ireland employs 85 people between its network services centre at Bandon in Cork and its sales and marketing division at Citywest in Dublin.