British Phone Gear Maker to Cut Another 2,000 Jobs
Two months after telling investors there would be no top-level management changes, Marconi, Britain's battered telephone equipment maker, said today that both its chairman and chief executive had quit, and that it would eliminate 2,000 more jobs, half of them in the United States. It also reported an operating loss of $329 million in the quarter ended June 30. The sudden departure of the chairman, Sir Roger Hurn, and the chief executive, Lord Simpson, capped one of the most spectacular corporate debacles of recent years. Created in 1999 from the General Electric Company of Britain, which is not related to the company of that name based in the United States, Marconi went on an acquisition spree. It spent some $8 billion, much of it in America, to transform itself from a military contractor into a telecommunications company -- just in time for last year's collapse of technology-related businesses.
