was an attempt to pool resources but any savings were lost due to fierce price competition in the sector and as slow economies, particularly in Europe, dented demand for telecom equipment.
Last year it swung to a net loss of 1.2 billion euros - the biggest since 2008 - largely because of a writedown on its mobile unit and restructuring costs from an earlier plan to lay off 5,000 workers.
The restructuring move will heighten speculation of a possible approach by Nokia, a move which sources close to the matter said last month the Finnish group was discussing internally.
Alcatel-Lucent confirmed it would dedicate 85 per cent of its research and development budget in 2015 to next-generation technologies, up from 65 percent today. Spending on older technologies would be cut by 60 per cent.
By the end of 2015, Alcatel-Lucent will halve the number of its business hubs globally, it added.
The CFDT union said Alcatel was planning to close its sites in the French cities of Rennes and Toulouse quickly, and sell its Eu, Ormes and Orvault sites by the end of 2015.