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Motorola Mulls Cost Cutting in 2009
Techtree News Staff, Dec 18, 2008 1304 hrs ISTAnnounces a set of cost-saving measures including reduction in employee compensation across most departments
Following a bleak 2008, Motorola announced a set of cost-saving measures. A significant change being the reduction in employee compensation across most departments.
According to a press releaseby the company, starting March 2009, Motorola will permanently freeze its US pension plans, preserving vested benefits accrued by employees and retirees, but eliminating future benefit accruals. "Motorola intends to continue to provide funding to meet its pension obligations to present and future retirees," the release stated.
"The sustained downturn in the global economy requires that we take these difficult but necessary steps," added Greg Brown and Sanjay Jha, co-chief executive officers at Motorola.
Also, do not expect a pay hike that you were looking forward to in the next year if you happen to be a Motorola employee. The company has ruled that employees in many markets will not receive a raise in 2009. Leading from the front are Brown and Jha. Both of them will voluntarily take a 25 percent cut in base salary in 2009.
Mobile companies are reeling under the current economic crisis. Earlier this year, Nokia too had downgraded its expectations for mobile device volumes and estimated that sales will be lower in the fourth quarter 2008 than previously expected.The bleak outlook continues for 2009 as well.
As for Motorola, these measures are expected to lead to significant cost savings in addition to the $800 million saving package that was previously announced in October 2008.
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According to a press releaseby the company, starting March 2009, Motorola will permanently freeze its US pension plans, preserving vested benefits accrued by employees and retirees, but eliminating future benefit accruals. "Motorola intends to continue to provide funding to meet its pension obligations to present and future retirees," the release stated.
"The sustained downturn in the global economy requires that we take these difficult but necessary steps," added Greg Brown and Sanjay Jha, co-chief executive officers at Motorola.
Also, do not expect a pay hike that you were looking forward to in the next year if you happen to be a Motorola employee. The company has ruled that employees in many markets will not receive a raise in 2009. Leading from the front are Brown and Jha. Both of them will voluntarily take a 25 percent cut in base salary in 2009.
Mobile companies are reeling under the current economic crisis. Earlier this year, Nokia too had downgraded its expectations for mobile device volumes and estimated that sales will be lower in the fourth quarter 2008 than previously expected.The bleak outlook continues for 2009 as well.
As for Motorola, these measures are expected to lead to significant cost savings in addition to the $800 million saving package that was previously announced in October 2008.
Related Links:
Motorola To Get WiMAX Swinging With 20MHz
Rock with Motorola MOTOROKR EM35
Motorola Gets Cute
Motorola's Hint QA30 Unveiled
Motorola ROKR EM30
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