Motorola Discloses Another 400 Job Cuts


In addition to the1,500 job cuts already disclosed, Motorola (NYSE: MOT) said today that it was cutting another 400 employees across the board, according to a document filed with the SEC. In total, the company will have pre-tax charges of $189 million in the fourth quarter. The first batch of layoffs were primarily in the mobile devices division, but these additional cuts will affect all of the “company’s business segments, as well as various corporate functions.” Earlier this month, Motorola took a number of drastic cost-cutting measures that including cutting the pay and benefits of both employees and executives by freezing pension plans, employee salaries, matching 401k contributions and cutting the pay of top executives in an effort to reduce costs.



First there was RAZR, then nothing followed, well, except for the Motorola warehouses full of NFG QASRs etc. It is fun watching this disfunctional company come to it's knees with the style of mismangement over the last 4 years. I predicted MOT to be less than 10 bucks June 2008, and then less than 5 bucks Oct 2008. You see, I work for this outfit and their answer to a problem: Stick another manager position on it. Then, when their shares fall, they announce a layoff by cutting thier fingers and toes off, just like Nortel did for years. Love the person that thinks MOT shares will rise again to 7 bucks, as I CLEARLY see it at a buck 99. Yup, $1.99 by June 2009. See you then !

I work at Mot

I concur as someone in this company, the mood here is they keep cutting people that do the work. I currently do the work of what 4 people used to do. The mood and motivation is in the garbage and the confidence within the company is at an all time low. There realy is no moral.
There is very little confidence in our leadership. I started with the company years ago when we were an engineering company. We are a different company these days, we are no longer a technology company. We are a company of executives.


When I read about the Merrill Lynch case and how its board of directors and ex-CEO were blamed for the shape the company is in, my thoughts invariably drifts to Motorola. Like Merrill Lynch, Motorola has lost its soul. Look around Motorola, and you see lots of senior level people. Hey, where are those whose hands and feet are supposed to be doing the work?


Motorola should lay off or offer early retirement to more of its top people rather than cutting a lot of its staff that are on the ground and dealing with customers. Layers upon layers upon layers of middle and upper executives and their right and left hand staff who do nothing except delay decisions, second guess decisions made on the field as well as just pandering to each other cost the company a lot of money. Decision making is slow and driven by the next quarter rather than on a long term view of how the company may benefit from decisions made. Sadly it is a company that has lost its direction and squandered its technological lead. Someone should remind Motorola that its a technology company and cutting engineers and R&D is like slitting its own throat. More cuts on the executive layers should be made immediately.

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