Motorola axes 9,400 jobs
Motorola, the telecom equipment manufacturer and chip maker, has announced that it is to cut a further 9,400 jobs over the next 12 months. The company also reconfirmed earnings forecasts for the fourth quarter, but warned that losses in the first quarter of 2002 could be larger than previously predicted.
The Financial Times reports Motorola's chairman, Chris Galvin, saying that the company's new business model is now designed to be "asset light". The Times reports that the new round of job cuts is expected to save about $865m (£588m) next year.
NEC suspends production at Scottish plant
NEC semiconductors, the Japanese chip maker, has confirmed that it will "suspend" production at its West Lothian plant in March 2002. The news effectively closes the company's biggest European chip-making facility, with the loss of 1,260 jobs.
The Times reports NEC's claims that the decision was part of a global restructuring prompted by poor demand for its mobile phone-related system, LSI. The Daily Telegraph reports that the company could see no immediate signs of recovery in the semiconductor market.
Best of the rest
The Times reports
- Carphone Warehouse, the £1.1bn mobile communications retail group, has been given a royal warrant to supply mobile communications to the Royal Household. The company will now be allowed to display the royal arms and the words "By Appointment" on its literature.
The Daily Telegraph reports
- Digital services downloaded from companies outside the EU are to become subject to VAT. At present non-EU countries do not have to charge VAT on sales of Internet services to EU citizens.
- British Telecom is to launch a "Broadband in a box" service that would allow customers to install high-speed access themselves. Customers will be able to buy the modem and connectors required for high-speed access by mail order from BT. The service is expected to cost about £50 for installation and £25 per month for subscription fees.
The Financial Times reports
- The hardware and consumer electronics company, Toshiba, has agreed to sell its only US chip factory to Micron Technology. The surprise announcement signals the company's withdrawal from the low-end DRAM market.