CUT COSTS

The company promised in January to reduce annual costs by $2 billion but has hardly made a dent. Schacht is trimming 10,000 jobs, but he needs to double that.

SELL ASSETS

Lucent (LU ) badly needs cash. Its optical-fiber unit could fetch from $3 billion to $5 billion.

BOLSTER FINANCIAL CONTROLS

Schacht must follow through on vow to slice inventories and accounts receivables by $2 billion.

FIND A NEW CEO

Until Schacht ends the seven-month-long search for his successor, uncertainty will continue.

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