Shock job losses and uncertainty have gripped a former Marconi company in Chelmsford less than 12 weeks after its brave new start as E2V Technologies.

It is having to act quickly to meet obligations to its Berkshire-based investment company partner 3i, which helped in the management buyout from the ailing main Marconi company.

Ninety jobs are going in the firm worldwide, although the bulk of staff are in England - 1,300 at Chelmsford and 25 at Lincoln.

The fledgling independent involved in world space programmes and manufacture of the infrared night viewer Argus said that it had been hit by the same downturn in markets affecting all UK manufacturing, and electronics particularly.

A series of stark memos from boss Keith Attwood asked for a worldwide reduction of 90 people.

E2V's largest part is at Waterhouse Lane in the county town and is likely to lose a large share of the 90.

Mr Attwood said that the £90million turnover business was significantly behind its business plan and had to slash its cost base.

He is also imposing a pay and recruitment freeze until April 2003, and manual skills salary bands will also be pegged although the firm says that it is still committed to a manufacturing career structure at Chelmsford.

Mr Attwood said: "As a stand-alone company operating in a tough economic climate, we have had to take firm decisions to safeguard the future of the business.

"Having established a number of cost-saving measures in the past few months, we are now taking the decision to reduce the number of jobs by approximately 90 in order to meet business objectives set for the medium term."

Published Thursday October 31, 2002

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