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July 29, 2008

Stagnant demand and a weak dollar soured the promises of a two-year merger at Alcatel-Lucent.

Chairman Serge Tchuruk and CEO Pat Russo's departures come as the world's largest fixed and mobile telecom gear maker reported its sixth consecutive quarter of losses early this morning.

The telecom equipment maker said Tchuruk will step down Oct. 1, and Russo will resign at the end of 2008." Alcatel-Lucent says it will immediately begin the search for replacements for both executives.

The merged company reported a net loss of $1.73 billion for the second quarter after taking a $1.3 billion goodwill writedown.

The company, which was formed through the 2006 merger of France's Alcatel and U.S.-based Lucent, is in the middle of a painful restructuring that foresees over 16,550 job cuts.

In its statement, the company quoted Tchuruk, Alcatel's longtime chairman and CEO before the merger saw him take on the non-executive chairman role, as saying the resignations were aimed at giving Alcatel-Lucent "a personality of its own, independent from its two predecessors."

Russo was quoted as saying that although she was "pleased" with the company's progress, "the company will benefit from new leadership and to bring a fresh and independent perspective."

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Source: Alcatel-Lucent.