Feeds

Marconi mulls bleak future following BT bombshell

Jobs threat loom

  • alert
  • submit to reddit

Secure remote control for conventional and virtual desktops

Thousands of jobs at Marconi look set to be chopped as the company restructures its operation following the devastating news last week that it had failed to win a chunk of a massive £10bn contract from BT.

The company is also setting out its stall for the possible sale of the telecoms equipment business as it comes to terms with failing to win such an important contract.

In a statement to the Stock Exchange this morning Marconi said that it "clearly recognised the need to refocus its business in the light of BT's decision and recent trends in the global telecoms equipment market".

It went on: "The Board will continue therefore to pursue all strategic options with the objective of maximising shareholder value."

And on the issue of jobs, Marconi said that "management is reviewing the resource and headcount in each of its activities, particularly in the UK, and will announce shortly the result of this review together with the associated cost savings and level of headcount reduction".

Marconi's uncertain future follows its failure last week to secure a piece of BT's 21st Century Network, a £10bn network upgrade. Marconi's share price share price bombed 40 per cent on the news. The company had been tipped to win a chunk of business from BT when it announced its preferred suppliers for its ambitious 21st Century Network (21CN) project.

According to BT, Marconi's gear was up to scratch, but it was uncompetitive on price.

Despite BT's stand that it was "just business", the former monopoly's decision not to name a single British company to supply the gear for its new digital network drew a stark warning from trade union leader Peter Skyte of Amicus.

He said that the announcement by BT "will seriously damage the UK's hi tech skills base and could potentially result in Marconi cutting up to three-quarters of their 4,300 staff and its ability to continue as a free-standing company.

"No other advanced country would allow such a strategic investment decision affecting its national infrastructure to be contracted to foreign-owned suppliers," he said. ®

Related stories

Friday 29th April 2005 10:31 GMT

Job fears haunt Marconi
Marconi savaged after failure to win BT 21CN deal
Marconi sales up, losses narrow
Marconi picks Chinese hardware partner

Secure remote control for conventional and virtual desktops

More from The Register

next story
Azure TITSUP caused by INFINITE LOOP
Fat fingered geo-block kept Aussies in the dark
NASA launches new climate model at SC14
75 days of supercomputing later ...
Yahoo! blames! MONSTER! email! OUTAGE! on! CUT! CABLE! bungle!
Weekend woe for BT as telco struggles to restore service
You think the CLOUD's insecure? It's BETTER than UK.GOV's DATA CENTRES
We don't even know where some of them ARE – Maude
Cloud unicorns are extinct so DiData cloud mess was YOUR fault
Applications need to be built to handle TITSUP incidents
BOFH: WHERE did this 'fax-enabled' printer UPGRADE come from?
Don't worry about that cable, it's part of the config
Stop the IoT revolution! We need to figure out packet sizes first
Researchers test 802.15.4 and find we know nuh-think! about large scale sensor network ops
DEATH by COMMENTS: WordPress XSS vuln is BIGGEST for YEARS
Trio of XSS turns attackers into admins
prev story

Whitepapers

Choosing cloud Backup services
Demystify how you can address your data protection needs in your small- to medium-sized business and select the best online backup service to meet your needs.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
Go beyond APM with real-time IT operations analytics
How IT operations teams can harness the wealth of wire data already flowing through their environment for real-time operational intelligence.
The total economic impact of Druva inSync
Examining the ROI enterprises may realize by implementing inSync, as they look to improve backup and recovery of endpoint data in a cost-effective manner.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.