Lucent replaces Schacht with Pat

Lucent Technologies has named former executive Patricia Russo as its new president and chief executive.

Russo, who spent 20 years with AT&T and Lucent before becoming second-in-command at Eastman Kodak last April, returns to the company where she was one of the founding executives of the 1996 spin-off from AT&T.

She clearly faces a daunting task, but Lucent is hoping that her history at the company will help her get up to speed very quickly.

Chairman Henry Schacht, who doubled up as Lucent's caretaker boss, said in a statement: "Pat has all the skills Lucent needs right now. She has strong management, operations and leadership experience."

Schacht, who served as interim chief executive after Richard McGinn was dismissed in October 2000, will stay on as interim chairman for a year.

"Henry and the team have put in place, and are implementing, a solid credible plan for turning this business around," said Russo. "Lucent and this industry have always been a home to me and I look forward to working with this team to accelerate the execution of our plan."

While at AT&T and Lucent, Russo served as Lucent's executive vice president of corporate operations from 1997 to 1999. In that post, she succeeded former colleague and current Hewlett Packard chief executive Carly Fiorina.

Russo was also president of Lucent's business communications systems unit from 1992 to 1996. In this position she executed the turnaround of a $6bn enterprise communications business, Lucent's second largest division, which was later spun off as Avaya.

Russo's selection signals the company's eagerness to return to its better days of being the premier supplier of phone equipment in the US.

However, having left the firm just nine months ago, investors may wonder if she is far enough removed from McGinn's regime, which is now blamed for Lucent's ongoing troubles.

The company cut about 39,000 jobs from the 106,000 workforce last year, and said last month that it would post a bigger loss than Wall Street expected for its first fiscal quarter, with revenues just half what they were a year ago. The figures will be announced on 22 January.

See also:

Lucent to cut another 7,000 jobs

Drastic measures as Q3 sales plummet  24 Jul 2002

Lucent to axe a further 7,000 jobs

Staff gone, family silver sold, but things are looking up  23 Jan 2002

Kodak forms wireless tech company

New firm will address the burgeoning info-imaging market  10 Jan 2002

Lucent offers early retirement to 10,000

Lucent Technologies is offering voluntary buyouts or early retirement to more than 10,000 US managers as part of the struggling telco's accelerated restructuring efforts.  07 Jun 2001

Lucent merges switching and data units

Networking equipment manufacturer Lucent Technologies has combined its switching and data networking units and reshuffled a number of senior executives.  17 May 2001

Lucent to cut 16,000 jobs worldwide

Lucent said it will cut 16,000 jobs worldwide in a bid to reduce its annual costs by $2bn, and may announce further cuts later in the year.  24 Jan 2001

Lucent ousts boss after more losses

The board of directors at troubled telecoms vendor Lucent has ousted chief executive Richard McGinn after another poor quarter.  01 Nov 2000

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