Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : VOLTAIRE'S PORCH-MODERATED -- Ignore unavailable to you. Want to Upgrade?

To: Sully- who wrote (46001)	1/8/2002 5:42:44 PM
From: stockman_scott	Respond to of 65232

Motorola layoffs hit executives January 08, 2002 Crain's Chicago Business by Ellen Almer In a move to reduce what many analysts call a bloated executive suite, Schaumburg-based Motorola Inc. confirmed Tuesday it will cut 20% of its top 600 executives across the board as part of a previously announced layoff. The cuts come amid the electronic giant's much-publicized struggles to compete in its cellular phone and semiconductor divisions, and just after the company posted its first annual loss since the Great Depression. Since it began faltering about 18 months ago, Motorola has cut about 48,000 workers, but this represents the first cut of executives. Analysts, calling the company top-heavy, had predicted the executive cuts for some time. They said cutting top managers would be at least a symbolic gesture to the company's rank-and-file workers (ChicagoBusiness.com, Dec. 19). A company spokeswoman on Tuesday said executives losing their jobs—those with the title of vice-president or higher—are now being identified and will be laid off by the end of March; the cuts are part of the 9,400-employee layoff announced last month. On Monday, the company said 700 to 800 workers at a Hong Kong semiconductor-chip making plant were also being cut as part of its previously announced layoff plans. When Motorola announced the cuts in December, it said it could save $865 million. However, financial information on the company's Web site at the time showed that it needs to eliminate up to $1.36 billion in costs next year in order to meet a profit target of 15 cents per share (Crain's, Dec. 24, 2001). How Motorola intends to trim the extra costs is unclear, as officials have not yet outlined their strategy. But, given the company's forecast of a 5%-to-10% drop in revenue next year and its history of having higher-than-industry-average manufacturing costs, analysts say Motorola will have little choice but to lay off more workers to achieve at least part of the costs savings.

To: Sully- who wrote (46001)	1/9/2002 3:07:42 AM
From: stockman_scott	Read Replies (1) \| Respond to of 65232

Some thoughts on why the market may go higher from here... Message 16881195