Marconi, the UK's leading electronics firm, has announced that 4,000 jobs will be axed in a cost cutting exercise in an attempt to claw back £350 million!
Since the share price dropped by half, a profit warning has been announced. Prior to this drop in price, the shares were suspended due to "severe downturn" within the market. This resulted in a £3billion fall in the value of Marconi. This slump has also affected at least four more leading companies namely Alcatel, Siemens, Spirent and Philips, who have seen a share price drop between 3 and 7 per cent.
These job losses come after another 3,000 were cut in April - a worrying sign to say the least. However, the CEO Lord Simpson tried to dampen the fire when he announced "Can I make it absolutely clear, Marconi is financially sound" although the signs seem to be saying something entirely different..