MURRAY HILL, N.J. (Reuters) - Struggling telecommunications equipment maker Lucent Technologies (NYSE:LU - News) said on Friday it would report a wider-than-expected loss in the fourth-quarter, cut 10,000 more jobs, and take $4 billion in charges for severance and a decline in its pension assets.

The Murray Hill, New Jersey-based company also said it canceled a $1.5 billion credit line, which it said it had not drawn from, to avoid a likely technical default.

The company, which has posted nine straight quarterly losses, said it expects a fourth-quarter loss of as much as 65 cents a share. On Sept. 13, it forecast a loss of 45 cents per share.

It said it expected to take a $1 billion fourth-quarter restructuring charge, on top of a $3 billion charge to cover a decline in its pension assets, primarily as a result of declines in the stock market.

"This is a crisis," said Tom Lauria, an analyst with Avtera Management, an independent research firm in New Jersey.

"I'm not surprised that the company has a need to reduce its headcount further, but what I do think is a surprise is the duration and severity of this industry downturn," he added.

Lucent, which is due to post its fiscal fourth-quarter earnings on Oct. 23, said that by the end of fiscal 2003, it expects to have 35,000 employees, about 10,000 less than it previously said it expected at the end of calendar 2002. The company employed 106,000 in 2001.

Lucent shares closed at 70 cents on the New York Stock Exchange on Thursday, off their year high of $8.75.

TIMES ARE TOUGH

The one-time telecom equipment giant reiterated its previous guidance for sales in the fourth quarter to fall 20 percent to 25 percent, from the third quarter's $2.95 billion.

At the same time, though, it said it was targeting a quarterly revenue break-even rate of $2.5 billion, down from its earlier estimates of $2.5 billion to $3 billion. That was down from its previous target of $3.5 billion.

In addition, it said its cash and marketable securities fell to $4.4 billion as of Sept. 30, down from $5.4 billion at the end of June. It said the $1 billion decline from the prior period included $200 million in cash to cover a previously announced restructuring charge and about $200 million associated with a lawsuit settlement.

Lucent said it expects to have more than $2 billion in cash at the end of fiscal 2003.

As well as canceling its $1.5 billion credit facility, Lucent said it has notified lenders that it will exercise its right to repurchase certain real estate properties for about $100 million. It said the facilities would be sold as part of its restructuring process and as a way of avoiding "the high probability" of defaulting on the terms of the agreement.

Lauria said that while bankruptcy was not imminent for Lucent, "it will have liquidity issues that challenge its own survival."

Lucent's further deterioration raises questions about its financial health and could have negative consequences on the company's balance sheet, including using too much cash, Lauria said.