Marconi new CEO quits

LONDON, England -- Beleaguered telecommunications company Marconi PLC ended a bruising week by announcing that deputy CEO John Mayo has quit the company.

Mayo had been scheduled to take over as chief executive later this month.

The resignation takes effect immediately, the London-based telecom equipment maker said in a statement.

The company said current CEO George Simpson and chairman Sir Roger Hurn would both remain in their posts.

Marconi shares lost half their value after the announcment last Wednesday that it was shedding 4,000 jobs and expected operating profits to halve this year.

The new cuts are in addition to 4,000 jobs lost since April.

Marconi shares closed on Friday at $1.48, down 7 percent, on the London Stock Exchange.

Mayo told the Press Association: "Marconi is a great company going through difficult times that are not of its own making.

"The entire workforce faces immediate short term challenges and it is inevitable that sacrifices will have to be made.

"I wish all my colleagues good fortune and look forward to my Marconi shares under George's (Lord Simpson's) stewardship appreciating in value over the coming years."

Lord Simpson said: "The speed and severity of the downturn in the markets clearly requires firm action and the solutions will not emerge overnight.

"However, the longer-term prospects of the industry remain good, we are soundly financed and we believe we are much better positioned than a number of our competitors."

Danny Carrigan of the AEEU union welcomed the resignation, blaming Mr Mayo for the company's recent ill fortunes.

"We hope that this act by Mr Mayo to take full responsibility for the company's plight and fall from grace will restore shareholders' confidence in the company," he said.

"John Mayo has been responsible for putting all the company's eggs in the telecoms basket and therefore his going will mean that the company will be able to look back to where they were successful in the past."

Mayo had been scheduled to replace Simpson as CEO under a management succession plan announced last year.

Simpson in turn was to replace the retiring Hurn.

Marconi said the economic slowdown meant customers were delaying purchases as they tighten their belts -- just two months after it said it believed it would achieve growth this year.