Both the chairman and the CEO of Alcatel-Lucent are vacating their offices. The notice follows the release of the results of the company’s second quarter, during which it lost $1.73 billion.
Chairman Serge Tchuruk’s last day will be Oct. 1, while CEO Pat Russo will stay on no longer than the end of the year while the board looks for her replacement. The company has begun a search for two executives to fill these roles.
Alcatel-Lucent also said that its board is initiating a process to change its composition, including reducing itself to fewer members. The first director to leave, effective immediately, is Henry Schacht, the former CEO of Lucent.
No specific reasons for the moves were given, but the company issued a statement that said it has completed the “transitional phase of the merger” between Alcatel and Lucent, and that it intends to move forward.
Since that merger, Alcatel-Lucent has missed most of its financial targets, conducted layoffs, and saw its stock drop to less than half of its post-merger value. The company cut its sales forecast for the next quarter.
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