Lucent Technologies will use part of its $45bn US based pension fund to pay for the majority of the redundancy packages of up to 20,000 staff that the firm plans to lay off.
A spokesman for the troubled communications networking equipment supplier declined to reveal exactly how much of the fund would be used to pay for the redundancy packages. He did state that the plan to use retirement fund cash to pay for redundancies would not aversely effect the scheme. According to the spokesman, at the start of the year the fund had a $19bn surplus.
Collette Chilton, executive - pension administration at the fund - was unavailable to comment on how the payments would affect the fund's investments and funding levels.
The company's plan to lay off between 15,000 to 20,000 staff came as it announced a $3.25bn loss last month for its third quarter. During the same period last year, the company lost $301m.
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