Jobs blow for telecoms giant

Jabil manufactures goods for Marconi

Nearly 700 telecom industry jobs in Merseyside and the West Midlands are being cut.

464 workers at Jabil Circuit in Liverpool are losing their jobs.

American firm Jabil, which manufactures products for Marconi, announced on Tuesday it is pulling out of the city by the end of July.

Some jobs may transfer to the company's Coventry site, but 220 staff there will make up the rest of the redundancies.

Liverpool will loose a unique pool of skills

MP Jane Kennedy

Jabil bought five factories from Marconi last year in a multi-million pound deal and had intended to manufacture products for Marconi for the next three years.

But the telecoms giant has since suffered financial turmoil, with its share prices falling to an all-time low.

Company spokesperson Beth Waltars said: "No one anticipated the worldwide slowdown impact that has hit all the telecommunications companies.

"They have all announced massive cut-backs in employees - the whole economy is suffering."

But MP for Wavertree in Liverpool, Jane Kennedy, said the redundancies could have been prevented.

'Historic site'

"It's very disappointing to see the company leave Liverpool, largely because of mistakes made at board level.

"It's a historic site where manufacture has been taking place for decades.

"I'm confident the majority of people who want jobs will find them elsewhere because their skills are so marketable.

"But that means Liverpool will lose a unique pool of skills."

Marconi said it is consolidating its operations on Liverpool's Edge Lane site where it employs 900 staff.

"The remaining activities undertaken at Liverpool are important to the long-term future of the company and so are the people who perform these activities," said a spokesman.

Workers 'devastated'

But Danny Carrighan from the Amalgamated Engineering and Electrical Union said Marconi's plans to sell its Liverpool site and lease back a quarter "rang alarm bells".

"It raises concerns about the viability of the company.

"The Jabil workers in Liverpool and Coventry are completely devastated.

"They relied on work from Marconi but the company's orders dried up."