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Motorola to Cut Jobs, Halt Production
Struggling Motorola (MOT) said Monday it is halting cellular-phone manufacturing at its plant in Harvard, Ill., and laying off about 2500 workers in an effort to improve sagging profits.
The announcement came less than a week after the Schaumburg, Ill.-based tech giant, which also is a leading semiconductor manufacturer, pledged more cost-cutting measures in 2001 to try to revive its slumping cellphone business.
The approximately 2500 manufacturing jobs being eliminated represent nearly 2% of its work force of 130,000.
Motorola said in a statement that the move is ''part of a long-term, company-wide strategy to improve supply-chain efficiencies, consolidate manufacturing, improve financial performance and build on company strengths.''
About 2,500 employees will remain at the company facility in Harvard, located 63 miles northwest of Chicago.
Motorola's share of the booming global cell-phone market slipped to just 13%, while Nokia's rose to 30%. Sweden's Ericsson is a close No. 3.
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