PracticeConsultingMarconi bosses quit and jobs axed

Marconi bosses quit and jobs axed

The chairman and chief executive of troubled telecoms group Marconi have resigned following the company's second profit warning in two months.

At last July’s Marconi agm in London, chairman Sir Roger Hurn said chief executive Lord Simpson would remain at the helm for a further year. At the same meeting, Sir Roger unveiled the two month operational review which has also resulted in the loss of a further 600 jobs in the UK.

Mike Parton, former head of the company’s networks division, has taken over as chief executive and Derek Bonham, a senior non-executive director, has been made interim chairman.

Parton said: ‘Our operational review is a decisive response to the dramatic shift in the fortunes of the global telecoms industry.

‘We have reshaped our core business to concentrate on those activities where we are most competitively positioned. We are focused on matters within our immediate control with a particular attention to cost reduction and cash generation to reduce debt.’

Marconi said it expected to make a half-year operating loss, following an operating losses of Pounds 227m in the first quarter rather than the break-even as it predicted previously.

Until July’s profits warning, former finance director John Mayo was expected take on the post of chief executive succeeding Lord Simpson. But he resigned as deputy chief executive following six months that Lord Simpson described as ‘probably the worst in the history of the industry’.

Links

Marconi: ‘It’s been a hell of a couple of weeks’

Security tight at Marconi agm

Simpson stays on for Marconi review

Mayo fails to show for the big day

Marconi FD faces US court action

Marconi directors buy up stock

Mayo buys shares before exit

Marconi man loses Pounds 200,000

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