Alcatel is to shed an additional 10000 staff, on top of the 23000 positions announced earlier in the year.
The news came as the French telecoms equipment company reported Q3 sales of €5.6bn down 18% on pro-forma sales of €6.8bn the year before.
The company moved into the red with a loss from operations of €215m compared to an income of €579m in the same quarter last year.
Serge Tchuruk, CEO, said it was due to weak business in the US, handsets and submarine systems, which he described as "now in full cyclical decline".
Alcatel plans to trim costs by a further 20%, taking charges of €1.2bn. That is likely to result in a Q4 loss similar to that in Q3 even after sequential sales growth of 10%. The company expects to make a net loss of €5bn for the year. But the firm says that its breakeven point will be reduced to less than €5bn per quarter.