Lucent closes its Israeli unit

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Jerusalem--Lucent Technologies Inc., the telecommunications giant that's been hammered by the economic downturn, on Tuesday said it was closing its Israeli unit Chromatis Network, which it acquired last year for $4.5 billion, the largest takeover in Israeli history. Israel represents just a small piece of Lucent's revenue, with 65% of sales coming from North America. However, Lucent will maintain a limited presence in the country, shifting from a "direct sales model" to an "indirect sales model" using its partners. Last week Lucent said it expects a rebound in profits next year after it restructures and slashes its work force.
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