This move comes following the announcement last month in which Motorola cut its forecast for the growth in industrywide semi-conductor sales for 2001 from 20-22%, to 10-15%.
The workforce reductions will be achieved by ending the assignments of contract and temporary employees, attrition, and both voluntary and involuntary severance programs. It is hoped that these measures will reassure the remaining permanent staff.
Each of our business units and support organizations has reviewed its circumstances and is making the necessary adjustments to help the Sector meet its goals, explained Fred Shlapak, president of the Semiconductor Products Sector. While job reductions are extremely painful, they are a necessary part of our cost-reduction needs.
Shlapak noted that some of the cost-reduction measures will be completed in the first quarter, while others will conclude later in the year, depending upon legal or regulatory requirements in various countries.
At the same time, Shlapak added, we are continuing to invest in R&D and build on our strengths to provide embedded solutions for the person, work team, home and auto.
