Job Cuts Expected at Marconi

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Speaking on the Ericsson takeover of Marconi, Carl-Henric Svanberg, CEO of the Swedish telecoms equipment manufacturer, said redundancies will have to occur for the buyout to be profitable.

Svanberg told the press: "When it comes to jobs in the UK it is clear we have acquired Marconi for its abilities, products and competence and they will bring skills and values to us. But it is clear that with a business that is running at a loss restructuring is necessary. Of course if we didn't do that we couldn't get the profitability, then we couldn't secure the long-term prospects."

Reports have said Svanberg intends to cut 1,000 Marconi jobs, while 6,500-plus employees are expected to move to Ericsson as a result of the deal. But he was unwilling to talk specifics.

"We are not able to go into any particular estimates of that kind," he said. "We can't get into any particular numbers. We have said 15 to 20 per cent of the entire workforce that we take over could be eventually affected."

Svanberg repeated that the deal meant the company could target broadband, IP and mobile converged networks. He said transmission networks were one of the biggest gains of the transaction.