Marconi CEO-in-waiting resigns

Just days after lowering its outlook for 2001 and cutting 4000 jobs, Marconi Deputy Chief Executive John Mayo has stepped down.

On July 4, Marconi said it expects sales to drop 15% for 2001 and operating profit to fall 50%, causing its stock to lose more than half its value. The news especially angered investors, who had been told a few weeks earlier by company management that Marconi would grow during the year.

As deputy chief, Mayo was scheduled to assume leadership of the company from current CEO George Simpson at Marconi’s annual shareholder’s meeting later this month.

With Mayo’s resignation, Simpson will remain at the helm of the company.

Contrary to several news reports, a Marconi spokeswoman said Mayo resignation was not made to placate angry investors.

“It was felt that George Simpson, with his operational experience, was the best person to lead Marconi through its current circumstances [and] to ensure that shareholder and investor confidence is restored as quickly as possible,” she said.