Alcatel-Lucent's identity shifts overseas

Just days after Alcatel-Lucent announced that its CEO, Pat Russo, was being replaced by former BT CEO Ben Verwaayen, another veteran from the Lucent side of the house announced she was leaving: Cindy Christy, head of the vendor's Americas region. Though Christy is being replaced on an interim basis by another former Lucent exec, Jim Cocito, the changes lend a more European identity to a company once described as a “merger of equals” from France and the U.S.

Not counting Cocito, only two of Verwaayen's six top lieutenants are Lucent veterans: Andy Williams, head of the services business group (who has been based in Europe even long before the merger), and Janet Davidson, its chief compliance officer. On the full 17-member executive leadership team, just seven hail from Lucent.

Verwaayen himself is a former red-ringer, but he focused on international sales during his time at Lucent (1997-2001). He will be less familiar than Russo or Christy with the North American market, which the company has repeatedly cited as the source of revenue shortfalls. It's unclear how the vendor's relationship in this market will change under the new CEO's reforms.

By last year's end, less than a third of the company's work force was American, and as of this spring, so was less than 20% of its real estate. Meanwhile, the company is winding down the basic science, material physics and semiconductor research conducted by Bell Labs, an icon of American scientific innovation. However, North America still accounted for 32% of Alcatel-Lucent's total revenue last year, just behind Europe's 33%.

Industry observers may see Christy's departure as potentially threatening to the company's American operations, but investors are eager for the merged company to settle on a clearer identity, whether or not it is less American.