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Strategies & Market Trends : Market Gems-Trading Strong Earnings Growth and Momentum -- Ignore unavailable to you. Want to Upgrade?

To: manny t who wrote (1736)	1/15/2001 6:43:35 PM
From: puborectalis	Read Replies (1) \| Respond to of 6445

Motorola to lay off 2,500 workers Company will halt production at its Harvard, Ill. plant ASSOCIATED PRESS CHICAGO, Ill, Jan. 15 — Struggling Motorola Inc. said Monday it is halting cellular-phone manufacturing at its plant in Harvard, Ill., and laying off about 2,500 workers in an effort to improve sagging profits. Advertisement THE ANNOUNCEMENT came less than a week after the Schaumburg, Ill.-based tech giant, which also is a leading semiconductor manufacturer, pledged more cost-cutting measures in 2001 to try to revive its slumping cell-phone business. The approximately 2,500 manufacturing jobs being eliminated represent nearly 2 percent of its work force of 130,000. Motorola said in a statement that the move is “part of a long-term, company-wide strategy to improve supply-chain efficiencies, consolidate manufacturing, improve financial performance and build on company strengths.” About 2,500 employees will remain at the company facility in Harvard, located 63 miles northwest of Chicago. Motorola, Inc. (MOT) price change $22.13 unch Add this stock to your MSNBC homepage Data: MSN MoneyCentral Investor and S&P Comstock “In 2,000, the Harvard manufacturing team lowered production costs and improved quality,” said Mike Zafirovski, president of Motorola’s Personal Communications Sector. “But we cannot competitively manufacture products when there is surplus global capacity at Motorola’s lower-cost sites.” The focus at the key Motorola facility will now be on fulfilling customer orders and on new product sourcing, the company said. Getting new phones quickly to market has been a consistent problem for Motorola, which was overtaken by Nokia in 1999 as the world’s No. 1 cell-phone manufacturer and has fallen further and further behind. Motorola’s share of the booming global cell-phone market slipped to just 13 percent, while Nokia’s rose to 30 percent. Sweden’s Ericsson is a close No. 3. The Harvard manufacturing shutdown is to take place by June 30, the company said. Remaining manufacturing activity is to be consolidated into lower-cost Motorola locations and outsourced.