Motorola Inc., the world’s second-biggest mobile phone maker, which is battling for its income, set to reduce its workforce 11 percent by trimming 4,000 jobs.
By a job cut Schaumburg, Illinois-based Motorola, expect $600 million in annual cost savings in 2008.
This is company’s second job cut in the year; previously the mobile giant slashed 3,500 people. Once most profitable company, Motorola has lost its business to the rival Nokia and Sony Erickson.
Market expectations, lethargy in introducing new and eye caching models, push company into the losses. To hold previous market position again Motorola has introduced restructuring plan in which company will reduce its expenses.
Initial cuts of the year, company expected to save about $300 million, or about 8 cents per share. In the latest planned cuts at the company, which had 66,000 employees at the end of 2006, will be made by the end of the year, which did not provide specifics on the breakdown of the lay-offs.
Markets guru expects that Motorola could not allure enough customers, because company did not introduced innovations. Its once best seller Razr phone did not came up with the expectations. Experts said that to grasp market again successfully company’s cost cutting method is not alone solution, but it need some new models to foray into the market.
Lawrence Harris analyst with the Oppenheimer said
It will certainly help them return to profitability but it’s not enough to get them to the double digit profit margins they seek
As the news spread in the market Motorola’s stock mounts to $18.46 in after-hours trade, up 1 percent from its close of $18.28 on the New York Stock Exchange.
Image: ivisionuk
Via: CNN
Comments
That is common and doesnt make a news. maybe Insta would also cut jobs with these kinds of news appearing on net
I think my dear friend you don’t that profit, loss job cut is part of business news. and as far as your apprehension about the job cut news appearing on the net, I like to inform u Motorola is a one of the biggest hand set maker company, who’s profit, loss and job cut announcement makes a news and I think it (unfortunately for u) makes news.
If you have any concern about the news content than bros I like to suggest u to read the full story and find out what impact it is leaving on its business.
Rahul,
your facts are wrong. the worlds largest handset manufacturer is Nokia and not motorola. Check the Wiki.
While as you think it is a news of Motorola cutting jobs , have you checked up how many are they hiring as well ?
Retrenchment is some department and hiring in other does not mean unemployment growth, dear friend....
There is more to corporate world than these news....
HI Kashmir,
the news posted by Rahul is of importance, may be not to you but to many in the world. Secondly a news is not targeted at a specific person, it has to be something which is of interest to the masses... And if such a big company like Motorola cuts down on jobs it is of interest to many people around the globe.
Now the second question that you have raised about Nokia being the largest manufacturer... we also know that and Rahul has stated it as ”ONE OF THE WORLD’S LARGEST CELL PHONE MAKERS” and he never wrote as it is the largest. I know that you will also agree to the fact that Motorola is one of the world’s largest cell phone makers... ISN’T IT...?
My dear friend, I would like you to go through the news thoroughly and believe that you will soon realize that there are no discrepancies therein.
Secondly, the question of Motorola being the world’s biggest cell phone manufacturer doesn’t arise as Rahul has clearly mentioned that it is ”ONE OF THE WORLD’S LARGEST CELL PHONE MAKERS.” With this, I hope, all your misunderstandings will be clear.
Finally, to your displeasure, I would like to aid that a blogger can’t write interesting material to all as something that is interesting to one may not be of interest to other.
Vinod, you re missing the point.
Motorola is a techie company and any techie company needs constant innovations .laying off jobs and adding new employees on a a new platform is a norm of the day.You cant expect a typist to be working on Sun Solaris, when the technology has moved that way.My contention is that the news is stale and you would see nothing major which creates a stir in the industry through this post.
why do u think that this news is stale, it has been posted today only
the content is something like terrorosts killing innocents in kashmir. Nobody cares about it anymore !
Guys, no point in trying to defend any story, each has their own views and it’s got to be respected. If one doesn’t find a story interesting, so be it. There’ll be an equal number of people who’ll find it interesting! Cheers!!
Respected Rekha I really welcome u in the middle, the point kashmir has raised and try to correlate with the kashmir prob’ really divert into the crossroad.
dear kashmir, kashmir issue is very much close to the heart of Indian and may be to the other sider. so my request is to not correlate it.
ok dear u dont care about the killing people in the kashmir, but ask the people who r affecting by it. ask the mothers who lost their brave son, try to analyze the national integrity which threaten by the cross border insurgency and than sit and compose ur mind and ask q from yourself, who is affecting by the death of my fellow countrymen.
The issue may be close to heart of any indian ? But does any indian care outside their drawing rooms ? The only exception being soldiers...
Anyway , the issue shud not get diverted
Motorola was in home dial up model and technlogy moved to broadband and cable, Motorola came out of it. Again Motorola was aggressively into routers till cisco presented the better technology. Motorola was into pagers till moble came with Motorola being leader ...again Nokia overtook them. maybe Motorola has some invention to help them besides radio networking , and if they can’t invent they would be out....Isn’t technology all about this ? And someone may take its place and the people just have to shift their job.....
what do u want,
killing a person is a solution, no dear no we have to understand that this issue is not going to settle down until kashmiri people does not take initiate like punjabi did
yup, you right Rahul, why was the issue of Kashmir raised here? It’s absolutely not relevant to the story. The point is Rahul, these comments only show that you article is indeed interesting, especially to Kashmir!
Btw, it’s really insensitive of kashmir to say that nobody cares about these issues. And as he rightly said, nobody’s going to care about his comments too if it’s irrelevant!
Dear Kashmir.
There is nothing to take it so seriously... it was a news and for many it is of interest (may not be to you). There was no need to talk about the history of the company. And technology is much more than that you talked about. Moreover this is not a technology channel under which the story has been published it is a business channel and the story has been done according to the channel. It is a news about 4,000 people losing their jobs and it not be of interest to you but to many it is something that deserves some consideration.
Moreover since you have talked about the technological side of Motorola let me tell you that the company initially debuted their car radio systems.. since then they changed their name to Motorola.. since MOTO means a car and ROLA means a Radio. They have changed their strategies, but this news was not about it. It is about a company cutting down on jobs and it should have been posted and let me tell you that this news is by no means stale...!
Isn’t it an art of getting all the attention .....lol.
One person sitting miles away from you made all you justify an article.
Were you not confident in the first place ? Be Confident young man if you wanna achieve something in life.
Not every comment need to be answered and not all questions need to be as well.
Cheers buddy..... be a friend and you will learn a lot .!
BTW , you may read my blog at www.thekashmir.wordpress.com