Telecoms equipment maker Alcatel-Lucent has confirmed the departure of both its chief executive and chairman in the wake of continued losses at the embattled firm.

The departure of chief executive Patricia Russo and chairman Serge Tchuruk was confirmed as the company reported a loss of £871.3m for the fiscal quarter ending 30 June 2008.

Tchuruk will leave the vendor on 1 October 2008; Russo will step down by the year's end.

Alcatel-Lucent has not reported a profit since the merger and its share price has dropped over 60 per cent since its high in April 2006, just after Alcatel announced it was to acquire US rival Lucent Technologies for an eventual figure of $11 billion.

In a statement, Russo said, "The company will benefit from new leadership aligned with a newly composed Board to bring a fresh and independent perspective that will take Alcatel-Lucent to its next level of growth and development in a rapidly changing global market."

The firm hopes the top-end shake up will shake off the bad financial results, and will be able to better compete with rivals, Ericsson, Huawei, Nokia Siemens Networks and Nortel.

The acquisition which closed in September 2006 was touted by executives on both sides, as a 'merger' of equals, and together the combination would be able to address their respective market strongholds, Alcatel in Europe and Lucent in North America.