Motorola unveils a major reorganization

Article Abstract:

Motorola said it will reorganize two-thirds of its operations to concentrate on critical communications markets. Among the affected businesses will be cellular telephones, wireless networks and pagers, which accounted for approximately $22 billion of the electronic giant's $28.9 billion in 1997 sales. The new move follows Motorola's Jul 7, 1998, announcement of $1.3 billion in net losses for the 2nd qtr 1998 as well as plans to lay off around 15,000 of its 150,000 employees. Specifics include cutting several autonomous subsidiaries and replacing them with the Motorola Communications Enterprise. This new structure will create three separate sectors that will oversee consumer products, industrial equipment and systems integration. Merle Gilmore, the Motorola Communications Enterprise's architect and new president, is expected to assume a more influential role within the organization.

Other Electrical Equipment and Component Manufacturing, Electronics, Electronic Components and Accessories, Electronics industry, Gilmore, Merle

---

Motorola overhauls staff structure; top management's pay dropped in '96

Article Abstract:

Motorola's new CEO Chris Galvin is restructuring the electronic giant's management as the company strives to maintain its global wireless market competitiveness. Motorola's 1996 revenue rose a mere 3%, to $28 billion, as compared to 1995's 22% growth, and top executives took pay cuts. Galvin's 1996 income was $1.4 million, as compared to 1995 compensations of $1.6 million. The new restructuring program is aimed at streamlining the corporate structure in order to help the company respond quickly and efficiently to new market trends. Motorola was a pioneer of the cellular phone market, but its 1996 market share dropped to 15% from 25% in 1995. Ericcson and Oy Nokia have outpaced Motorola in developing digital wireless phones. Lucent Technologies and Northern Telecom are providing intense competition in the digital communications infrastructure market.

Equipment and supplies, Wireless network, Wireless LANs, Telecommunications equipment industry

---

Galvin must show a Motorola recovery before dismissal pressure grows intense

Article Abstract:

Motorola CEO Christopher Galvin must produce a turnaround by early 1999 to avoid intensifying pressure from the board to replace him, institutional investors and other insiders said. Many believe Galvin, CEO since Dec 1996, will receive a grace period because his regime is responsible only for the delay in introducing new digital handsets and losing some market share in wireless infrastructure construction. Motorola's deterioration stems mostly from the Asian currency crises that have weakened its chip business. Pager sales have weakened in China due to a large inventory buildup and in the US because of slowing demand and significant losses. Previous CEOs George M.C. Fisher and Gary Tooker are drawing blame for memory-chip business expansion and setbacks in switching from analog products to digital handsets and networks.

Galvin, Christopher B., Company Business Management

Similar abstracts:

• Abstracts: Unisys plans to cut jobs in a major reorganization. For Digital's chief, a last grab for glory; investors want results, not excuses
• Abstracts: Motorola's Scanlon quits for start-up; move could disrupt restructuring plans. Motorola's prospects are linked to new technologies; electronics giant has large, risky bets riding on unproven products
• Abstracts: Olivetti, nearly free of its PC division, now must turn around core business
• Abstracts: Motorola, broadsided by the digital era, struggles for a footing; the latest Galvin at the top attempts a turnaround; some doubt his ability: peace among the warring tribes
• Abstracts: Investment co. (domestic) industry. Investment company (domestic) industry

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.