UK telecoms equipment firm Marconi has said it will cut another 4000 jobs. The move comes following reports of operating losses of GBP130 million from its core communications division during Q4 2002. The company hopes to become profitable by March 2003.
The telecommunications industry has suffered over the last year and shows little hope for improvement in 2002. Under its previous targets, for Marconi to generate a profit by 2003, it needed to reach sales of GBP800 million.
By slashing operating costs by GBP200 million, the breakeven sales target is reduced to GBP675 million. This should enable Marconi to reduce its debt, which reached an all time high of GBP4.4 billion in September. Although the company has steadily cut its debt since then, the proposed job losses will bring this down to GBP2.9 billion.
Of the 4000 job losses, a quarter will be in the UK. Including the numbers from this new initiative, Marconi will have implemented a total of 13,000 redundancies this year.