U.K. telecommunications equipment maker Marconi PLC is to slash 3,000 jobs, around 6 percent of its workforce, and issue an earnings warning, according to a report in the Monday edition of the Financial Times newspaper.
Staff were sent letters outlining the layoffs on Friday, and the cuts, expected to be announced officially Tuesday, will take place over the next twelve months, the newspaper reported. In the longer term, however, there will be a net increase in staff as the company grows, according to the report.
Marconi declined to comment.
Marconi manufactures hardware for the telecommunications industry and employs about 49,000 people worldwide. Shares in Marconi (MONI.LON) were down 7.23 percent at 3.015 pounds (US$4.34) in morning trading.
Most of the main telecommunications manufacturers are suffering because of a slowdown in orders from network operators. Motorola Inc., Nortel Corp. and Alcatel SA have all announced restructuring plans. Last week Lucent Technologies Inc. was forced to deny that it is facing bankruptcy.