Motorola: layoffs and divestments
After the negative results communicated yesterday and which we reported in the morning edition, new doubts are gathering on Motorola's desire to keep its structure intact while retaining all the divisions currently active. During a conference held in the past few hours, the managers of the Schaumburg company explicitly mentioned the analysts gathered to listen to the prospects for the next few months of layoffs and divestments. In particular Motorola would be willing to lay off another 7,000 employees which would lead to a total of 39,000 cuts of the year. Most of the newly laid-off staff would be part of a restructuring plan that would involve the divestment of some of their fields of interest. Among the divisions in the eye of the hurricane, the one that deals with semiconductors and that manufactures processors for mobile phones, PDAs. , network systems but also the PPC chips used by Apple. Management said during the meeting with analysts that the semiconductor sector will not recover until the first half of next year. In recent days, some sources had come to speculate that Motorola intended to get rid of the semiconductor sector which adds up most of the losses.