To: abstract who wrote (44941 ) 12/18/2001 3:04:22 PM From: stockman_scott Respond to of 65232 Some scoop on a new direction for Motorola... 12/18/2001 Scoop Briefly noted, by Ron May <<* I just got a call at 11:30am from a very good source who has given me only dead-on, reliable information in the past. He told me there is a big scoop pertaining to Motorola. Here is what he said: 1. Ed Breen, former CEO and chairman of General Instrument, will officially become Motorola's COO on January 1st. This is public knowledge. 2. The current CFO is retiring. Ed is planning to bring in a new CFO from outside the company; the plan is, as I understand it, for the new CFO to bring in a new team, mostly from the outside. Some of this is known, some of it is not. 3. Here is the scoop: Ed Breen has been studying General Electric as a model for company organization. He has concluded that Motorola is a top-heavy, bureaucratic organization. Motorola has over 500 officers; GE, which is three times the size of Motorola, has fewer officers. Ed Breen plans to eliminate 20-30% of Motorola's 500 plus officers, starting right away. Most of them will be gone within 30 to 45 days. 4. In making decisions on who will be eliminated, Breen is looking at numbers like revenue per officer and net per officer. In other words, what kind of profit margin do they have associated with that officer? 5. The basic business strategy of Motorola is likely to significantly change. There will be a huge--and I emphasize the word "huge"--reduction in emphasis on cell phones. Cell phones have become commoditized; there is no margin and it is a business that Motorola should have sold off ten years ago. They have lost out to others in that area. 6. Motorola will emphasize embedded applications. It may not be common knowledge, but most of the embedded chips in appliances, etc. are produced by Motorola. Additionally, Motorola will focus on custom engineering, which is where its natural strength lies. 7. The word I am getting is that the employees will be happy about the changes because the result will be a less stagnant, more responsive, dynamic and efficient organization. The employees will be happy to see cuts if they bring about a transformation of the organization, I am told. That's all I have for now.>>themayreport.com This is from The May Report -- a local high tech newsletter. Regards, Scott