Marconi cuts jobs as sales fall

30 May 2003

Troubled British telecoms equipment manufacturer Marconi has announced plans to reduce its global workforce by 500 to 13,000 by March 2004, in anticipation of decline in sales in the first quarter of fiscal 2003. According to CEO Mike Parton sales for the first three months of the year are expected to fall to GBP400 million, down from GBP426 million in the previous three months, principally as a result in a continued decline in sales to the Middle East, US and China. The job cuts will be part of a series of measures which aim to reduce Marconi’s full year sales breakeven target from GBP1.7 billion to GBP1.5 billion. For the full year ending 31 March 2003 Marconi posted a pre-tax loss of GBP1.33 billion, including goodwill, amortisation and exceptional items totalling GBP729 million. Total sales fell to GBP2 billion from GBP4.3 billion, as the company has sold off many of its non-core assets during the year.

United Kingdom