Feeds

Marconi culls 800 jobs

'Cost reduction initiative'

  • alert
  • submit to reddit

Beginner's guide to SSL certificates

Marconi is to rid itself of 800 workers in the UK following its failure to win a slice of a major £10bn contract from BT.

The job losses were widely expected after BT rejected Marconi's bid to become a preferred supplier for its new, gee-whiz 21st Century Network (21CN). Although BT said Marconi's telecoms gear was up to scratch, the UK's dominant fixed-line telco said the price just wasn't competitive.

However, the job losses are fewer than the 2000 cuts unions had feared the company would make if it lost the BT deal. As a result of today's announcement 450 jobs are being lost in Coventry, with a further 300 in Liverpool.

The restructure will give Marconi room to "dismantle much of the current UK-based central operations organisation leading to significant cost savings", it claimed. The company is also looking at introducing other "overhead cost reduction initiatives" across the whole business in a bid to save money.

Full details of the makeover and how much it will cost will be published on 17 May when Marconi publishes its preliminary figures for the fiscal year to the end of March.

In a statement, Marconi chief executive Mike Parton said: "We are committed to maintaining and improving the products and services we provide to our customers.

"The new leaner organisation that we have announced today allows us to maintain our product roadmaps, focusing our R&D expenditure on our key product lines whilst making significant cost savings mainly in overhead areas to underpin profitability."

Earlier this week, union bosses said they were "disappointed" following a meeting with Marconi execs to discuss potential layoffs. ®

Related stories

Unions hold powwow with Marconi over job fears
Marconi mulls bleak future following BT bombshell
Job fears haunt Marconi
Marconi savaged after failure to win BT 21CN deal

Providing a secure and efficient Helpdesk

More from The Register

next story
Doctor Who's Flatline: Cool monsters, yes, but utterly limp subplots
We know what the Doctor does, stop going on about it already
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
'Cowardly, venomous trolls' threatened with TWO-YEAR sentences for menacing posts
UK government: 'Taking a stand against a baying cyber-mob'
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
The 'fun-nification' of computer education – good idea?
Compulsory code schools, luvvies love it, but what about Maths and Physics?
Ex-US Navy fighter pilot MIT prof: Drones beat humans - I should know
'Missy' Cummings on UAVs, smartcars and dying from boredom
Sysadmin with EBOLA? Gartner's issued advice to debug your biz
Start hoarding cleaning supplies, analyst firm says, and assume your team will scatter
Don't bother telling people if you lose their data, say Euro bods
You read that right – with the proviso that it's encrypted
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
Win a year’s supply of chocolate
There is no techie angle to this competition so we're not going to pretend there is, but everyone loves chocolate so who cares.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.