Marconi to cut 3,000 jobs worldwide

Communications group Marconi is set to outline plans to axe 3,000 jobs, one-third in Britain.

The company is preparing to meet with trade unions representing the company's UK workforce tomorrow to discuss its plans.

Union leaders are expected to be told Marconi is cutting 1,200 jobs in the UK, primarily at its factories in Liverpool and Coventry. Confirmation of the move will then be posted on the London Stock Exchange Tuesday morning.

Marconi employs around half of its global workforce of 55,000 in the UK. It has operations across Europe, the US, Asia and Australia.

The company has recreated itself as a hi-tech firm with a growing emphasis on telecoms in the US, following the £7bn sale of its defence business to BAE Systems in 1999.

While its full-year results to the end of March are thought to be in line with City estimates of £710m, there has been mounting pressure for Marconi to reassure investors over its current performance.

The company's share price has dived from a high of 800p this year, to 325p on Friday amid concern about the impact the slowing US economy may be having on its business. Over 40% of Marconi's sales are generated in the US.

Investors' fears have been raised by a series of profit warnings from telecoms equipment manufacturers in recent weeks.

Marconi's stock price plummeted last month when US networking equipment firm Cisco announced a raft of job cuts. It fell even further when Nortel of Canada lowered its first quarter estimates.

Last week, French rival Alcatel said it would cut 1,100 jobs in the US, while Lucent and Ericsson have also been affected by the slowdown.