Alcatel-Lucent today said it will cut an additional 4,000 jobs, adding to the 12,500 redundancies the troubled telecoms equipment group has already announced as it reported a third-quarter loss.

The group also said today it will streamline its management. Jean-Pascal Beaufret, Alcatel-Lucent's chief financial officer, will step down and a new seven-member committee will report to Patricia Russo, the group's chief executive.

Mr Beaufret will be replaced by Hubert de Pesquidoux who leads the company's enterprise division. Christian Reinaudo, head of the European operations, will also leave the group.

Alcatel-Lucent also reported its third successive quarter of losses. During the third quarter, losses reached €258 million (£180 million) compared to a €532 million profit last year if both companies had already merged. The company has issued three profit warnings this year, as it has struggled to integrate Alcatel and Lucent following the £5 billion merger in December.

Ms Russo said: "We are seeing a big slowdown in spending in the wireline part of the market, particularly around North America.

“Some of that is related to the housing issue: new lines, new homes, et cetera.”

Alcatel-Lucent's US operation is expected to bear the brunt of the 16,500 job cuts, which will be implemented by 2009.

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