Spooked by reports that Russo had been given an ultimatum to come up with a plan to rescue the newly merged company, it issued a statement saying that while clearly disappointed in the most recent changes in the company’s outlook, the board supported Pat Russo and the leadership team, and the efforts they are making to adapt the company’s plans in light of this year’s developments.

The board said it would review the plan to be developed by management during the next scheduled meeting on October 30, prior to the release of third-quarter results.

Alcatel-Lucent has issued three profit warnings this year. But the board reiterated its confidence in the strategic direction taken with the merger of Alcatel-Lucent and the future potential of the company.

The board is under pressure from an investment community alarmed that a succession of bad news has seen the share price on the New York stock exchange fall from a peak of $15.43 in January to a current level of $10.16. This values the company at just $23bn compared with the $60bn value of market leader Ericsson.