Troubled telecoms equipment manufacturer Marconi may cut an additional 4000 jobs as it attempts to reduce costs by an further £200m after reporting a fall in sales.
The company today announced core sales of just over £1bn compared to £1.4bn in the previous quarter. The additional job cuts come on top of the 23 per cent reduction since September 2001, when the total workforce fell from 49,000 to 30,000.
"It is with regret that we have announced the need for further cost and job reductions, but we are determined not to be dependent on improvement in the market to return the group to profitability," said chief executive Mike Parton in a statement.
Keith Humphreys, an analyst at EuroLAN research, said that there was no sign of the telecoms market picking up yet. "Marconi got out of defence too early but they weren't to know," he explained.
An additional 9,200 jobs were cut through the recent sales of some of the company's non-core businesses, including its Commerce Systems and Data Systems units. It said that the new restructuring programme will be completed by March next year.
Marconi reported good progress towards its debt reduction amid a difficult market. Debt has reduced by about £800m from £4.3bn at the end of its second quarter. The firm's market value has dropped from £1.1bn to £1.05bn since yesterday.
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