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Alcatel Downsizes: Alcatel, the French phone-equipment company that recently announced plans to buy Calabasas-based Xylan Corp., said it will eliminate 12,000 jobs, or 10% of its work force, over the next two years to cut costs and boost profit. Most of the cuts will be in Europe, but some will take place in the United States, including 700 at recently acquired DSC Communications of Plano, Texas, a spokesman said.