Like two pods in a peanut shell, Lucent Technologies Inc. plans to realign its business operations into two main divisions-wireless and wireline.
It is part of the Murray Hill, N.J.-based company’s efforts to evolve a business model to rescue it from its series of financial and organizational flaws that have spawned layoffs, spinoffs, financial losses, frenzied speculations of takeovers and profit warnings.
The company’s chief executive, Henry Schacht, unveiled the decision, which is expected to go into effect during the next “several weeks” through Internet e-mail circulated to the staff. The wireless operating unit will be called Mobility Solutions group, which will cater to wireless service providers, such as AT&T Wireless Group Inc., Japan’s NTT DoCoMo Inc. and Cingular Wireless.
The wireline operating unit, which will be known as the Integrated Solutions group, will serve long-distance carriers, Baby Bells and backbone companies.
Jim Brewington, who has been the head of the wireless network group, will lead the wireless unit. The wireline group will operate under the leadership of Janet Davidson, who has been the head of the switching and software business.
The company believes the new model will create a leaner and more-streamlined Lucent.
“The idea is to realign the company to match the demands of our customers who are also structured in wireline and wireless,” said Ichiro Kawasaki, a spokesperson for the company.
The company has been working with three operating units, which include optical, data and wireless. The software and switching activities have been under its data unit.
