Marconi slashes headcount

Marconi is to restructure its business and layoff 800 jobs in the UK in an attempt to remain competitive.

The move comes hard on the heels of last week’s news that the company failed to land any part of a £10 billion network upgrade contract with BT.

Marconi's current product units will be combined with its regional business organisations in order to create geographic ‘centres of excellence’ based on the different product groupings. This, the company says, will enable it to dismantle much of the current UK based central operations organisation leading to significant cost savings.

The four new business groups – SoftSwitch, Wireless, Optical & Access Networks, and Data Networks will continue to provide its customers with Network Integration and Installation, Commissioning and Maintenance Services.

Marconi’s Value Added Services business will continue to offer end-to-end services to enterprise customers. The APAC and Middle East regional business areas will also continue as sales and service channels for the regional product businesses.

The company will provide an update on the financial impact of these cost reduction initiatives on May 17, when it will announce its Preliminary Results for the year ending 31 March 2005.