MOTOROLA slashes 2,000 more jobs; stock plunges
Thursday, September 6th 2001, 12:00 am
By: News On 6
CHICAGO (AP) _ Motorola Inc. eliminated 2,000 more jobs Thursday as a result of the continuing slump in the telecommunications industry, bringing its job cuts to more than 20 percent of its work force since December.
The company, mired in a long slump, said softer-than-expected demand for telecommunications equipment has resulted in sales being flat in the third quarter rather than up 5 percent as anticipated.
The announcement sent Motorola shares plunging $1.88, or 11 percent, to $14.52 Thursday morning on the New York Stock Exchange.
The cuts will come from the company's Global Telecom Solutions Sector, which handles cellular phone network development and manufacturing. That business, based in Arlington Heights, has operations in Texas, Arizona, Florida, Canada, Brazil, Britain, Israel, China, Ireland, Japan and India.
Specific jobs and locations have not yet been identified, Motorola spokesman Scott Wyman said from company headquarters in Schaumburg.
The moves bring Motorola's total job cuts to 32,000 since December, leaving a total work force of 115,000.
The company blamed ``slower growth in the wireless infrastructure market, resulting from delays in capital expenditures by wireless service providers.''
Robert Growney, Motorola's president and chief operating officer, said the company expects to report an operating loss of 5 cents to 8 cents per share in the third quarter, including pro forma adjustments. Wall Street's latest estimate is for a loss of 5 cents per share.
That will make four straight money-losing quarters for Motorola, which said the pending loss will be smaller than the $232 million operating loss of the second quarter.
Growney cited increased sales and improved profitability in the cellphone division, Motorola's biggest business, but added: ``All other segments of the company are expected to experience sequential declines in sales and profitability.''
The semiconductor unit, the company's second largest business, is suffering from weaker sales and profitability this quarter, he said, although orders are higher.