To: All Motorola employees
2009 Cost-Reductions Announcement and Fourth-Quarter Preliminary Results
We have just issued a press release to announce that Motorola is taking action to further reduce our cost structure. We also released preliminary results for Q4 2008 and set expectations that our results will be below the guidance we provided to the investment community last October.
The announced cost-reduction actions will include workforce reductions of approximately 4,000 positions, with about 3,000 coming from Mobile Devices and about 1,000 coming primarily from corporate functions and, to a lesser extent, from the other business units. These workforce reductions are expected to begin immediately and are in addition to the workforce reductions previously announced in late October, which affected 3,000 positions.
These are not easy decisions to make, but they are necessary to ensure that we address strategic challenges and align to market conditions. In keeping with our core values, we are committed to helping affected employees through this difficult period.
Our Mobile Devices business is dealing with a global market slowdown, continued weakness in consumer demand and a limited product portfolio. At the same time, we are making good progress on delivering important new products later this year and getting positive responses from our customers on our next generation of smartphones.
Our Broadband Mobility Solutions businesses remain strong. Enterprise Mobility Solutions (which includes Government & Public Safety and Enterprise Mobility) and Home & Networks continue to perform well in a challenging environment.
We want to assure you that despite the economic headwinds and the challenges in Mobile Devices, we have a solid foundation for the future. We are fully committed to positioning all Motorola businesses for long-term success. By remaining focused on the job at hand and continuing to meet our customers’ expectations, we are confident that Motorola will emerge as a stronger, more nimble company, that is well-positioned in each of its key markets.
We thank you for your continued dedication to Motorola and steadfast focus on serving our customers. Best regards,
Greg Brown President & Co-CEO, Motorola CEO, Broadband Mobility Solutions |
Sanjay Jha Co-CEO, Motorola CEO, Mobile Devices | |