SEP 01] MARCONI NEWS
More Doom For Marconi
chairman and chief executive have resigned after the company
issued its second profit warning in two months and announced a
further 2,000 job losses.
job cuts come on top of the 8,000 already announced this year.
hundred of the latest redundancies will be in the UK. It is not
known yet whether these new redundancies will affect Marconi's
plant in Coventry.
executive Lord Simpson and chairman Sir Roger Hurn are standing
down and Mike Parton, head of the company's networks division,
has been appointed chief executive.
financial fortunes of the company have darkened further as it
revealed that it expects to make a half-year operating loss
following losses of £227 million in the first quarter of the
contrasts with the break-even projection predicted in its
previous profit warning in early July.
company hopes the latest reductions in staff numbers will help
it save around £600 million in costs a year - up from the
previously planned £350 million.
union bosses are demanding talks with Marconi to determine the
company's future. They had emergency meetings with the company
after the last round of cuts to seek reassurance that no more
losses were planned.
the chairman of Marconi's trade union committee and the AEEU
national officer says:
comes as a major blow to employees. It was completely
unexpected and follows on from thousands of previous
company is clearly in turmoil and I have requested an
emergency meeting with the directors of the company to clarify
the implications for our members and where the job losses will
latest staff cuts will see Marconi's job numbers fall to around
29,000 by March 2002 - a 25% drop from the 39,000 employed in
March this year.
share price on the London Stock Exchange rallied a few points
this morning - bouyed partly by the major industry news of
Hewlett Packard's takeover of Compaq. But today's share price at
around 56p is still a long, long way off the £12 mark it stood
at just 12 months ago.
ALSO: [10 APR 01] MARCONI
JOB CUTS HIT COVENTRY