The announcement came as the company reported year-on-year sales down by 83%.

Two-thirds of the jobs in its optronics division are to go over the next two years.

The cuts will be less severe in Livingston, with 45 of its 200 posts being phased out by the end of 2003.

Like most firms in the telecoms sector, Alcatel has seen demand shrivel dramatically over the past year and it fell into the red in the first three months of 2002.

Focus shift

The combined workforce for the plants at Livingston and at Nozay in France, is currently more than 1,500.

The Nozay factory would shift its focus to making so-called "active" components, while Livingston would concentrate on "passive" parts, Alcatel said in a statement.

Earlier this year, Alcatel said it would be selling or closing more than 100 factories by the end of 2003.

The firm, which operated 120 factories last year, aims to cut back its number of plants to 12 or fewer.