Marconi axes 800 jobs after losing contract
Telecom equipment group Marconi Corporation was plunged into crisis at the end of April by its failure to land a lucrative network upgrade contract.
LONDON, ENGLAND-Telecom equipment group Marconi Corporation was plunged into crisis at the end of April by its failure to land a lucrative network upgrade contract. The company was not selected as preferred supplier for BT’s next-generation 21st Century Network project. In a rapid response to the news, Marconi said it was cutting 800 jobs in the UK.
A process of consultation on the proposed reduction in headcount has been instigated with Trade Union and employee representatives. The optical networking group has 4300 staff in the UK, including 1650 people in Coventry, 630 in Liverpool, and 350 in Beeston; the goal is to merge product units with its regional business organizations. Marconi claims that these changes will enable the company to dismantle much of the current UK-based central operations organization, leading to significant cost savings, and that other cost reduction initiatives are being put in place.
-Bridget K. Marx