i-mate CEO says company isn't dead yet, just dealing with 'major fraud'

[Thanks, Brendan]
LayOff posts

Yet another company has succumbed to making tough choices in the face of a rough economy, as Vodafone is reportedly preparing to lay off "hundreds" of workers in Britain. The report stated that the cuts could come as soon as this week, and while there was no definite number given as to how many of its 10,000 employees would be asked to leave, we do know that the operator is aiming to "boost free cash flow by cutting one billion pounds of costs." Predictably, Voda declined to comment on the report, but it'll probably have to talk soon whether it wants to or not.
Details are starting to flow in regarding those 4,000 job cuts that Motorola announced in January, and evidently a thousand of 'em are coming from a single Chinese facility. According to the People's Daily Online, 1,000 Moto workers are being dismissed, and every last one of 'em are from the research and development team of the mobile phone department. We're told that the software platform project team suffered the most, and all told, there's just 100 staffers that remain at the plant. For whatever it's worth, Motorola has affirmed that its commitment to growth in the Chinese market remains the same -- apparently it thinks it can still succeed with far fewer heads doing the work.
We'd already heard that Motorola would be focusing on Android alone for its future smartphones, and this here report certainly gives a good bit of credence to that notion. The flagging handset maker has just announced that 77 employees at its Plantation, Florida facility would be axed effective March 27th. Now, we knew thousands in its handset division were being laid off, but this sect is different than most -- with these departures, Moto will reportedly stop conducting new Windows Mobile development at the plant. We can't say we're totally against an all-Android approach, but it's a shame these 77 couldn't have been given new job descriptions with "Google" replacing "Microsoft" in the fine print.
It's official: Moto's pulling out the axe. The beleaguered manufacturer is no stranger to financial struggles at this point -- nor layoffs, for that matter -- but the latest round cuts some 6 percent of employees from Moto's global operations, and 3,000 of the 4,000 will come directly from the handset division. The news comes along with a preliminary fourth quarter earnings estimate of a 7 to 8 cent per share loss (which isn't really "earnings" when you think about it), so yeah, it's business as usual out in Schaumburg: get lean and start making awesome products. Soon, Moto. Please.
The words "job security" and "Motorola" haven't coexisted in a non-sarcastic manner for quite some time, and things just seem to be deteriorating by the day. Not even two full months after the flagging company announced that 3,000 employees would be sent packing, a new Reuters report has it that the axing process in Q4 will be accelerated. Specifically, some 1,900 (versus 1,500 as originally predicted) will be cut in an attempt to save $800 million in 2009, though there's no word on how damaging the inevitable productivity losses will be given the markedly low morale. To no one's surprise, most of the Q4 cuts will be in the mobile devices segment; we're beginning to think Sad Moto Face™ here will never, ever vanish.
It's not an easy time to be a provider of wired and wireless network infrastructure. Actually, let's be honest -- it's not an easy time to be in most any line of work -- but the infrastructure guys are having a particularly tough time right now, and it's definitely showing in Alcatel-Lucent's latest unfortunate move. The Paris-based company is trimming a grand worth of heads out of its 75,000-plus workforce and culling some 5,000 contractors, a move that it hopes will stop a cash hemorrhage that's been persistent since Alcatel's purchase of Lucent in 2006. The embattled CEO already stepped down earlier this year in a quest for profitability in a desperately brutal economy, so it stands to reason that there'll be some belt-tightening down below until they can right the ship -- but it's always sad to see the parent company of what remains of Bell Labs struggle to keep its head above water.
Who's praying now, Modu? The once cocky and altogether promising handset maker has apparently fallen on tough times, with a recent TalkingMobile report suggesting that around one-quarter of its staff (including a few executives) has been told to head home. The reason? Aside from the obvious "the economy" cop out, the company has also been hit hard by launch delays and the inability to land a carrier partner willing to shell out for promotions. Granted, this is far from the end of Modu -- there's still cash to be burnt and avenues to walk down, but we'd probably skip over it when sending out job applications right now.
With acquisitions frequently come layoffs, and Virgin Mobile's submitting to that ages-old tradition today by announcing a workforce reduction of 45 folks in its New Jersey and California offices -- a total of about 10 percent of its 400-strong team. With the closure of the company's Helio buy, it makes sense that there'd be some redundancy, and indeed, the company cites Helio along with its transition to an IBM-contracted IT infrastructure as the justification for the layoffs. The move comes despite Virgin Mobile USA having post a strong quarter, so while Virgin appears to be in solid shape, they're making like most of corporate America and battening the hatches for a presumably brutal '09.








