Marconi to cut 4,000 jobs

Telecommunications gear maker Marconi said Tuesday that it will cut an additional 4,000 jobs to spur the company's return to profitability. The U.K.-based company suffered with the rest of the telecom industry from a decrease in capital spending by telecom carriers over the past few quarters. Marconi's core telecom business generated $1.02 billion (?706 million) in sales in the third fiscal quarter ended Dec. 31. That compares with revenue of $1.62 billion during the year-ago quarter.


Marconi shed 9,000 jobs in its third fiscal quarter, reducing its worldwide staff to 41,000 people from 49,000 in three months. The company also chopped its core telecom business by 23 percent to 30,000 in the nine months ended Dec. 31. Marconi said it expects to experience its usual seasonal uplift in sales from the third to the fourth fiscal quarter, but added that dour market conditions might dampen this rise.