Job cuts at Marconi to top 10,000

Marconi’s chairman and
chief executive have resigned as the company announced that a further 2,000
jobs are to go.

Chairman Sir Roger Hurn and chief
executive Lord Simpson  resigned from
the board and the company as news of the redundancies broke, which follow the
8,000 job cuts already announced this year.

The company expects to reduce the
headcount in its core business to around 29,000 employees by March 2002,
representing a 25 per cent reduction from the 39,000 employed at March 2001.

It also intends to streamline the
organisation, engage in additional outsourcing, reduce its number of locations
and eliminate duplication of tasks.

Mike Parton, the new chief
executive, said, "Our operational review is a decisive response to the
dramatic shift in the fortunes of the global telecoms industry. We have
reshaped our core business to concentrate on those activities where we are most
competitively positioned. We are focusing on matters within our immediate
control, paying particular attention to cost reduction and cash generation to
reduce debt."

Ben
Willmott

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