The telecom equipment maker will restructure unprofitable markets as part of a program to lower costs by 1.25 billion euros ($1.52 billion) by the end of next year.
Alcatel-Lucent will miss its 2012 profit margin target and pre-announced an adjusted operating loss of 40 million euros on sales above 3.5 billion in the second quarter.
The job cuts will affect 6.4 percent of Alcatel-Lucent's 78,000 employees. The group will also seek to get rid of unprofitable services contracts in which it manages networks for operators, squeeze more money out of its patent portfolio, and exit or restructure in countries where it is weak.
Alcatel-Lucent also gave a new annual profit target of posting a second-half adjusted operating margin better than the first half when it stood at minus 3.7 percent. It confirmed its prior target of aiming for a strong positive net cash position at the end of 2012.
Recently, Nokia and RIM announced their plans to cut jobs.
Alcatel-Lucent said sales in its wireless and optic divisions had a double-digit decline in revenue because of moderate spending from service providers. Sales in its software, services and solution segment also declined, and the services business was almost flat, it added.
Revenue in North-America, Europe and the Asia Pacific region witnessed a double-digit decline, the company said, adding that the decline in Asia was mainly driven byChina, where sales fell by 21 percent.
Competitive pricing was one of the main reasons that eroded profitability, the company said. Overall revenue was €3.5 billion, down 7.1 percent year-over-year.
"These times demand firm actions," said Alcatel-Lucent's CEO Ben Verwaayen in a statement. Besides cutting 6.6 percent of its total of 76,000 employees the company also plans to exit and restructure unprofitable markets and is planning to manage its patent portfolio as an independent profit center, it said.
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