Alcatel-Lucent bosses resign after string of losses

Speculation has already started over contenders to replace the chairman and CEO of Alcatel-Lucent, both of whom stepped down yesterday following the sixth successive quarterly loss for the distressed telecommunications vendor.

Tchuruk and Russo resigned after the US$1.7 billion quarterly loss for Q208 was announced.

Chairman Serge Tchuruk and CEO Patricia Russo orchestrated the  takeover of US-based Lucent Technologies by French company Alcatel, but the combined company has never been as successful as the two lone entities. It has shed more than half of its market value since it started operating as Alcatel-Lucent in December 2006.

Considered the world’s largest supplier of fixed-line telecoms networks, it posted a second quarter loss of €1.1 billion (US$1.7 billion) to end-June, which trails a yearly loss of €3.5 billion in 2007 and €176 million in 2006. The stock price has fallen 63 per cent since January 2007.

There is suggestion that investors have been trying to oust the pair for months, and in May shareholders publicly criticised Tchuruk and Russo, approving measures that made it easier to remove them.

Tchuruk is set to leave operations on October 1, while Russo will stay until the end of the year when she will receive her €6 million (US$9.3 million) ‘golden handshake’.

“Serge and I think the company could benefit from new leadership,” Russo told analysts. “I am committed to ensuring a smooth transition.”

The equipment supplier has started to look for successors, most probably from outside the company and possibly from outside its two home countries.