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Motorola to cut management ranks, close Hong Kong facility

Posted: 11 Jan 2002 ?? ?Print Version ?Bookmark and Share

Keywords:motorola? semiconductor? semiconductor test? assembly operation?

Motorola Inc. plans to eliminate 20 percent of its 600 corporate officersat the vice president level and aboveand consolidate its five semiconductor test and assembly operations into two final manufacturing sites.

CEO Chris Galvin will be responsible for identifying the approximately 120 officers whose jobs will be eliminated, said a spokeswoman at Motorola's headquarters in Schaumburg, Ill.

The reduction in corporate officers mirrors the 20 percent drop in sales at Motorola during the current downturn. To date, all of the company's layoffs have involved lower-ranked employees, and the spokeswoman said top management felt "a clear responsibility to eliminate management layers."

Motorola expects to have about 100,000 employees on its payroll by the end of this year, down from about 150,000 at its peak in August 2000. The job cuts are continuing, with some 4,000 positions to be eliminated from the chip division this year. A spokesman at the Austin-based Semiconductor Products Sector said he could not identify how many of the company's 600 corporate officers work at the chip division, which currently employs about 30,000 worldwide.

Motorola's Semiconductor Products Sector announced that it will close its test and assembly facility in Hong Kong's Silicon Harbor, eliminating 800 to 900 jobs there. A spokesman said the sector plans to reduce its final manufacturing (test and assembly) sites from five to two. Besides the Hong Kong closure, two other test and assembly operations are expected to be shuttered. Semiconductor Products Sector management at the semiconductor sector may identify them as soon as late this week.

Currently, Motorola operates final manufacturing plants in Hong Kong; Sendai, Japan; Austin, Texas; Tianjin, China; and Kuala Lumpur, Malaysia.

The Kuala Lumpur location, with more than 3,000 employees, is expected to remain open, the spokesman said.

The announcements come a week after Edward Breen officially assumed the president and chief operating officer position at Motorola. Breen, viewed by Wall Street as capable of introducing efficiencies into Motorola's far-flung operations, earlier served as CEO at General Instrument Corp., which Motorola acquired in January 2000.

David Lammers

EE Times

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