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Last Updated: Sunday, 22 May, 2005, 09:43 GMT 10:43 UK
Marconi meets DTI before job cuts
Marconi worker
The global market is making more expensive UK workers less attractive
Marconi will meet the UK Department of Trade and Industry (DTI) on Monday as the maker of telecoms equipment prepares to cut 800 jobs.

Marconi spokesman Stephen Hobson said the firm did not expect the meeting to have any affect on the redundancies.

The Financial Times said the DTI will call on Marconi to keep research and development operations in the UK.

Marconi recently lost a key BT contract and there are concerns it will move units abroad if it loses more business.

The planned redundancies are a direct result of Marconi not winning part of BT's new �10bn UK network contract.

The blow was especially hard as Marconi gets about 25% of its work in the UK from BT and it has been fighting to turn itself around after almost collapsing in 2000.

Round table

Mike Parton, Marconi's chief executive, and Alan Johnson, the secretary for trade and industry, are expected to attend the Monday meeting.

"Nothing will be discussed that is not already in the public domain," Marconi's Mr Hobson told BBC News.

Mr Hobson said that the meeting was to discuss the company's recent earnings report and the company's current operational status.

According to the Financial Times, the DTI is concerned that Marconi may be tempted to shift R&D jobs overseas after signing a major deal with China's Huawei Technologies.

Marconi's chief executive was quoted as saying that Marconi planned to keep at least part of its R&D operations in the UK.

The government is under increasing pressure to protect UK jobs after a number of high-profile problems, most notably the recent collapse of carmaking firm MG Rover.


SEE ALSO:
Marconi warns of �50m BT impact
17 May 05 |  Business
800 Marconi staff cut in shake-up
06 May 05 |  Business
Job losses now likely at Marconi
03 May 05 |  Business
Marconi plunges on BT deal news
28 Apr 05 |  Business
Marconi plans new �70m city base
06 Apr 05 |  West Midlands
Marconi sticks to growth forecast
09 Aug 04 |  Business


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