News Article
US High Tech Company Motorola Announced Job Reductions Of 7000 People
US high tech company Motorola announced job reductions of 7000 people
worldwide. The cut backs are due to hit all business segments and are
designed to lower costs for manufacturing, R&D, sales and admin. The charges
associated with the reorganisation are valued at $1.9bn. A total accounting
charge of $3.5bn for this and other measures, including write-offs, is to be
made. Total headcount by the end of the year is set to be 100,000 workers.
Chairman/CEO Christopher B Galvin comments: "The investment environment of
the late 1990s may never repeat itself, because many of the business models
so highly touted then never succeeded in the first place. This comprehensive
restructuring purposefully returns Motorola to approximately its mid 1990s
size, the era prior to the excesses of the telecom and dot-com booms. Going
forward we will grow our broader base of businesses to serve many real
fundamental needs of the global society with: two-way radio products and
systems for public safety; cellular handsets and networks to enhance mobile
communications; end-to-end cable broadband systems to deliver digital video,
voice and high-speed data solutions to the home; integrated electronics for
automotive and the telematics markets; and embedded semiconductor solutions
for wireless communications, networking and transportation customers. We
will achieve this growth at a moderate pace given short-term market
conditions, while earning improving profits and generating cash."
As part of the move, Motorola has broadened its supply agreement with
foundry partner TSMC. The arrangement will increase Motorola's outsourced
manufacturing over the next several years. TSMC will manufacture products
that are fully compatible with Motorola's process technologies.
TSMC president Rick Tsai comments: "In anticipation of this agreement, TSMC
earlier this year increased its 2002 capital appropriation to $2.5bn for
projects including expansion of 300mm manufacturing capacity at Fabs 12 and
14. The appropriation also allows us to expand the availability of
leading-edge technologies. Our total manufacturing capacity is expected to
nearly double to 8m wafers by the end of 2006, allowing us to easily satisfy
the immediate and future needs of Motorola and all of our foundry customers
around the globe."
the late 1990s may never repeat itself, because many of the business models
so highly touted then never succeeded in the first place. This comprehensive
restructuring purposefully returns Motorola to approximately its mid 1990s
size, the era prior to the excesses of the telecom and dot-com booms. Going
forward we will grow our broader base of businesses to serve many real
fundamental needs of the global society with: two-way radio products and
systems for public safety; cellular handsets and networks to enhance mobile
communications; end-to-end cable broadband systems to deliver digital video,
voice and high-speed data solutions to the home; integrated electronics for
automotive and the telematics markets; and embedded semiconductor solutions
for wireless communications, networking and transportation customers. We
will achieve this growth at a moderate pace given short-term market
conditions, while earning improving profits and generating cash."
As part of the move, Motorola has broadened its supply agreement with
foundry partner TSMC. The arrangement will increase Motorola's outsourced
manufacturing over the next several years. TSMC will manufacture products
that are fully compatible with Motorola's process technologies.
TSMC president Rick Tsai comments: "In anticipation of this agreement, TSMC
earlier this year increased its 2002 capital appropriation to $2.5bn for
projects including expansion of 300mm manufacturing capacity at Fabs 12 and
14. The appropriation also allows us to expand the availability of
leading-edge technologies. Our total manufacturing capacity is expected to
nearly double to 8m wafers by the end of 2006, allowing us to easily satisfy
the immediate and future needs of Motorola and all of our foundry customers
around the globe."
