Patricia Russo CEO of Lucent Technologies Date of Birth: 12.06.1952 Country: USA

Biography of Patricia Russo

Patricia Russo, the CEO of Lucent Technologies, took over as CEO of the company on January 7, replacing Henry Schacht. Lucent has been struggling to regain its former stability and hopes to find success with its new leader. Russo returned to Lucent after an 18-month break and is tasked with revitalizing the company and completing the restructuring initiated by Schacht. Schacht will remain as chairman of Lucent for at least another year, although some analysts believe he will only stay for two more months.

Russo's new position at Lucent is the culmination of her successful career. She spent eight years working in marketing and sales at IBM before joining AT&T in 1981, where she worked for nearly 20 years. At AT&T and its spin-off Lucent, Russo led the major business that serviced large telecommunications operators. When the restructuring of Lucent's second-largest division, responsible for dispatch centers and structured cable systems, was needed, Russo was appointed to oversee the complex process. This division is now an independent company called Avaya, and Russo served as its chairman. She then left Avaya to become the president and CEO of Kodak.

Lucent, which was separated from AT&T in 1996, has faced numerous challenges in recent years. The telecommunications industry was hit hard by the economic crisis of 2001, and Lucent, along with its competitors Nortel Networks and Cisco Systems, has been struggling to survive. The company has undergone significant downsizing, with the number of employees decreasing from 106,000 to 77,000, and plans to lay off another 20,000 employees. Lucent has also ceased production of low-profit products and sold off secondary businesses. In the past year, Lucent reported a net loss of $16.2 billion.

Despite the difficulties, Russo sees the current situation at Lucent as an opportunity for change. She believes that the company's downsizing and restructuring efforts are necessary steps to align its business with industry needs and market opportunities. Russo is optimistic about Lucent's future and is ready to lead the company in implementing its plan to effectively utilize its resources.

Opinions among analysts are divided regarding Russo's return to Lucent. Some believe that Lucent missed an opportunity to bring in fresh perspectives and new ideas from an outsider. However, others support Lucent's decision, citing Russo's familiarity with the company and its culture. Matrix Asset Advisors, one of Lucent's major investors, supports Russo's appointment, recognizing her leadership abilities and knowledge of the company.

The reaction from Wall Street to Russo's appointment was lukewarm, with Lucent's stock dropping 2.1%. However, Henry Schacht firmly rejects any criticism of Russo's appointment, stating that Russo is the best candidate for the job. He believes that Russo's leadership qualities and marketing experience make her the ideal choice for Lucent.

Russo's departure from Kodak has raised concerns about the company's future. However, Russo assures that Kodak has already implemented changes and processes that will allow it to succeed in its goals. Russo spent about nine months at Kodak, leading structural reorganization efforts within the company.

The return of Patricia Russo to Lucent marks the end of a tumultuous period of corporate leadership changes. It also leaves Kodak in search of a new second-in-command to support CEO Daniel Carp.

Overall, Patricia Russo's appointment as CEO of Lucent Technologies brings both optimism and skepticism. She faces the challenging task of turning around the struggling company and restoring its former success.