Fewer People=Greater PROFIT$$$
Who needs people when you've got a monopoly on technology and endless streams of cash?
Lucent's Patricia Russo, who eliminated 30,000 jobs at Lucent Technologies Inc., says she will move quickly to reduce the workforce when she takes over as head of Alcatel SA after [its] $13.4 billion purchase of [Lucent].Move over Rice, you've got serious competition!
Russo aims to save $1.7 billion after three years . . . [by eliminating] 10 percent of the combined staff, or 8,800 jobs, after reducing the workforce by 50 percent at Murray Hill, New Jersey-based Lucent.
Russo also sits on the board of New Jersey-based drugmaker Schering-Plough Corp. The woman controls the whole state!
Russo closed factories and offices from Landover, Maryland, to Naperville, Illnois, and Columbus, Ohio at Lucent. Pacific Crest Securities analyst Tim Daubenspeck aid she may follow the same recipe this time and close plants in the U.S. first.Very simple. Decrease workers, increase PROFIT$$$.
The combined company will be based in Paris, and Russo may have a tougher time shuttering locatios there quickly due to stringent labor laws. . .She can't fire workers in Paris because French politicians fear their people. Yet, here in America, it's OTAY! Remind me again why dogs lick their genitals? Because they can!
Millions of French citizens are protesting a labor contract instituted by Prime Minster Dominique de Villepin that reduces job protection for people under 26. France's unemployment rate is 9.6 percent, twice as high as in the U.S.
About half of the savings will come as she pares back the 88,200 employees. Most of the reductions will come within two years.And it looks like most of the "paring" will be in the US!
[Russo's] pay last year including bonus increased 14 percent to $4.75 million.She gets paid handsomely to "pare" her countrymen.
"The only negative thing I can say about Pat is sometimes she doesn't move quickly enough," Levy said [referring to Lucent's lag behind competitors Cisco and Juniper.]
The deal needed to happen after a flurry of takeovers among service providers, said Tony DeSpirito, a fund manager at New York- based Pzena Investment Management, Lucent's fifth-biggest stockholder.
Who are the top four? Other bankers, no doubt.
SBC Communications Inc. last year bought AT&T Corp. for $16.5 billion. The company, now called AT&T Inc., agreed in February to purchase Atlanta-based BellSouth Corp. taking full control of Cingular Wireless LLC.
"It only makes sense for the vendors to consolidate as well," said DeSpirito, whose firm manages $20 billion. "You combine those two companies and it allows you to make some significant cost cuts."
And so it goes. The inexorable result of a legal system based on monopoly and greed is more monopoly and more greed, until the whole grotesque system consumes itself.
Wakeup America. The next "cost cut" will be you.
Related post at OK Now