Pros
Over the previous years ALU has been a very stable place to work, It seemed to weather the 2001 downturn better that Nortel. A great thing about Alcatel-Lucent is its people. Very talented people all over the world. The work environment is excellent, respectful and professional. You feel at home here. ALU has great potential : in the IP space and the DLS access space.
Cons
The extensive use of outsourcing in the last few years is not quite working as it should. there are issues with time zones, training of the people overseas. I personally spent nearly a year training/supporting engineers remotely in India and China. Sometimes there is simply no way those people could get to be as efficient and knowledgeable in two months as the people they replaced that had been doing that for 10 years. Specially true in the domain of testing. ALU sometimes feels too big, the merger is a 'catastrophe' (some competing products were still being developed as of two months ago!!)