Alstom to Axe more than 1,000 Global Jobs in Cost Cutting Drive

Faltering French engineering firm Alstom is to cut more than 1,000 jobs worldwide as part of a major cost cutting programme.

The manufacturer, which produces capital goods including turbines for power plants and wind farms, is to make the move following a fall in orders which hit the company's first-half profits and cash flow.

Alstom booked €9.4bn ($12.7bn, £7.8bn) worth of orders over the six months to October, a 22% drop compared to the first half of last year.

But sales for the firm were up 4% organically, amounting to €9.7bn, over the same period.

However, the firm saw a negative cash flow of €511m over the six month period, much more than analysts expected.

"In markets that remain contrasted, our commercial activity in the first half was supported by a good flow of small and medium-sized orders, but lacked large contracts, notably in thermal power," said Patrick Kron, Alstom's chairman and chief executive officer.

He added: "We want to regain strategic mobility and have launched an asset disposal programme."

The company said the dramatic cost-cutting programme will create 1,300 job losses, mostly in Europe, and it hopes to raise between €1bn and €2bn from the plan.

Alstom may also sell-off a minority stake in its train unit, Alstom Transport, which makes high speed trains, among other things.

The firm was bailed out by the French government a decade ago and has relied on orders from state rail operator SNCF and utility EDF Energy.

The company is now on a possible collision course with the French government.

Alstom has not replied to a request for comment at the time of publication.