Marconi bosses quit and jobs axed after new profit warning

Marconi's chairman and chief executive have resigned after the company issued its second profit warning in two months and axed a further 2,000 jobs.

The telecoms equipment group says the job losses will be in addition to 8,000 announced earlier this year.

Chief executive Lord Simpson and chairman Sir Roger Hurn are standing down and Mike Parton, head of the company's networks division, has been appointed chief executive.

The company says it expects to make a half-year operating loss.

It forecast first-quarter operating losses of £227m rather than break-even as it predicted in its previous profit warning in early July.

The company said the measures, along with other previously announced plans, would see it save £600m in costs a year - higher than the £350m previously targeted.

Now union bosses are demanding talks with Marconi to determine the company's future.

MSF general secretary Roger Lyons said: "Obviously, with the massive fall in Marconi's share price and renewed profit warnings these two senior figures within the company have fallen on their swords or have got out before the going gets too tough."

The staff cuts will see Marconi's job numbers fall to around 29,000 by March 2002 - a 25% fall from the 39,000 employed in March this year.