Alcatel isto cut a further 2,500 jobs in its US operations because of the continuing slump in telecoms equipment sales.

The French company has now cut nearly 4,700 US jobs this year - more than a quarter of its US work force.

A company spokesman said the job cuts will span management and manufacturing positions.

About 800 of the cuts will occur at the company's US headquarters in Plano, just outside Dallas, where the company had 7,000 employees.

Another 700 will be at Raleigh, North Carolina, nearly half of Alcatel's 1,500 employees there.

The company's Raleigh assembly plant will see much of its work sent to plants in Nogales, Arizona, and Nogales, Mexico, and to other contract plants, Murphy said.

About 100 jobs will be eliminated in Chantilly, Virginia, where Alcatel had 400 workers; and the remaining 900 cuts will be spread across the country, the spokesman said.

Company officials have given no guidance on when the sagging telecommunications market might improve.

Phone and Internet companies have cut spending on new equipment.

"We just continue to monitor how business is going, and we adjust to remain competitive," the company said.

Alcatel builds networks for voice and data transmission.

In trading on U.S. markets before the job cuts were announced, Alcatel's U.S. shares fell 27 cents to $16.25.