Electronics Production | January 19, 2007
Moto axe 5% work force
Motorola plans to cut 5% of its global workforce, around 3,500 jobs, after posting a 48 percent decline in fourth-quarter profit.
"Our goal is to return to double-digit operating margins in the second half of this year," Chief Executive Ed Zander said in a conference call. The job cuts, which are expected to save the company about $400m over two years and will be completed by mid year 2007. Also the latest model did not very well. "We had a mix between the Krzr and the Razr that was perhaps not what we wanted. But the Krzr still did very well," Zander said. Krzr, which has a much more generous profit margin, is three times as expensive as the two-year-old Razr. "I keep reading about Razrs being tired, but we sold more in this quarter than we ever have," Zander said.