Marconi officials to meet DTI on job redundancies |
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Tue, 24 May 2005 10:10
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With BT keeping Marconi out of new £10 billion UK network contract, the company is facing tough times as it had done almost 25% of its contracts through BT. The news of Marconi not being awarded any part of the contract resulted in over 40% drop in the company’s share price, with the company trying to regain lost ground after a major financial setback in the early part of the decade.
The telecom equipment maker has cut 800 jobs in the UK, and there is a growing fear that the company might move its units and R&D facilities abroad in order to stem losses. This fear is more prominent in the wake of Marconi signing a deal with the Chinese manufacturer Huawei Technologies.
| In view of this, Marconi Chief Executive will be meeting Alan Johnson – minister for the Department of Trade and Industry (DTI). Even though the meeting is not expected to have any effect on redundancy, DTI might request Marconi not to move R&D operations outside the UK.
Though DTI officials deny any comment on the meeting, Marconi officials say that it is a routine meeting that takes place between the two every year to discuss company results and performance.
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