Marconi to cut another 1,000 jobs

Shrunken telecoms equipment maker Marconi, which has cut over half its work force in the last year, has said another 1,000 jobs…

Shrunken telecoms equipment maker Marconi, which has cut over half its work force in the last year, has said another 1,000 jobs will go due to slumping sales in its global markets.

The British group, which has seen demand for its large telecom and corporate network gear wither, said it expected to be left with about 7,000 British workers after the cuts, down from 15,0000 just over 12 months ago.

Plants at Liverpool, Coventry and Nottingham will be hardest hit after the firm posted a sharp fall in first-quarter sales.

Tripped up by an industry slump after a cash-draining acquisitions spree, Marconi has been involved in months of negotiations with lenders about a cure for its financial woes. The former blue chip cannot cover the cost of its £3 billion in net debt without a restructuring.

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Marconi has sold businesses and outsourced work to cut its global headcount down to around 20,000 from about 50,000 12 months ago. Only last week it sold a business that employed 4,000 people.