CHICAGO—Motorola Inc., which has been laying off workers in waves for the past 18 months, has one more round of cuts to make before reaching its goal of trimming 50,000 jobs, or one-third of its workforce.
Motorola executives are “reviewing” the final restructuring steps to take and will most likely act in the next three to five moths, Edward Breen, Motorola’s president and chief operating officer, told shareholders Monday at the company’s annual meeting in Rosemont. He declined to say if the steps to trim the workforce would involve more layoffs or divesting a division or both.
“This company has to make money, and it has to make money quick,” said Mr. Breen, an outsider who rose to the No. 2 spot at Motorola in January. Mr. Breen is considered the heir apparent to Motorola founder Paul Galvin’s grandson, Chairman and CEO Christopher Galvin, and has been charged with returning the company to profitability.
The Schaumburg based maker of cell phones and semiconductors has been hit hard by the telecom downturn and has suffered from management missteps.
In 2001, Motorola lost $3.94 billion, or $1.78 a share, including a $3.3-billion charge for severance costs and other special items, on a 25% sales drop to $30 billion—its worse financial performance since the Great Depression.
Mr. Galvin restated the company’s forecast of becoming profitable in the third quarter and for the full year in 2002 before special charges, even as sales decline 5% to 10% this year.
From Crain’s Chicago Business
By Sandra Jones
