Motorola to cut down jobs and shut down in India

 

motorolaMotorola Inc.  is an American, multinational, Fortune 100, telecommunications company based in Schaumburg, Illinois. It is a manufacturer of wireless telephone handsets, also designing and selling wireless network infrastructure equipment such as cellular transmission base stations and signal amplifiers. 

Motorola has resolved to cut down 6% of its workforce this year ,for improved financial performance . It would be slashing down about 4000 jobs , of which 3000 would be from its mobile division and 1000 from  its other business units.

Earlier in October 2008 , they cut down 3000 jobs and saved upto $800 million and in addition this current plan to slash 4000 more would help them save about $700 million more in 2009.The move is the latest in cost-cutting measures by Motorola, which has been struggling to revive its business in recent years.

In December, the company announced it would reduce its CEOs’ salaries, freeze its U.S. pension plans as of March 1, 2009, and temporarily suspend company matching contributions to employee 401(k) plans. 

Motorola’s shares, which have lost 71 per cent of their value in the past 12 months, closed down 21 cents at $4.11 before the after-market announcement.The company has lost its number two position in the global handset market to Samsung. 

Meanwhile , Motorola has planned to shut down its distribution division in India due to dwindling sales .About 150 of its pre-informed workforce has been re-distributed in other Motorola units in India .

In India , Motorola’s legs are weak, with its top executives like Lloyd Mathias(senior director for sales and marketing ,mobile devices ),Mohan Kumar(VP & MD for software and services),Firdose Vandrevala(the company’s country president) having left the company earlier ,as they were unsure of its future in India .

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s