1,300 Marconi workers could lose jobs

26 Oct 2005

Ericsson has admitted that job cuts at Marconi will be inevitable following its proposed takeover of the struggling UK vendor. Earlier this week Ericsson agreed to purchase its smaller rival in a deal worth GBP1.2 billion (USD2.16 billion), including GBP700 million in pensions liabilities. Under the deal, Ericsson will acquire Marconi’s optical networks operations, the bulk of its network access business, its data networks operations and international services operations. The takeover will see 6,670 employees transferred to Ericsson, but more than 1,300 are likely to lose their jobs.

United Kingdom