AT&T cutting 12,000 jobs due to "economic pressures"
[Via CellPhonesMarket.com; thanks, SK]
Posts with tag layoff
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.
Ugh, this is just downright depressing no matter how you spin it. Sure, it's just the reality of business and all, but it's no fun to hear that 270 staffers will soon be looking for employment when UIQ Technology finishes climbing into the grave. After hacking 200 jobs in June and being coined "dead" by Sony Ericsson's Patrick Olson, All About Symbian has it that the company has put its remaining employees "on notice of dismissal." We're told that SE has agreed to "continue funding the company on a by month by month basis in order to allow it to investigate options for the future," but from the outside looking in, we'd say the outlook is bleak. Thankfully, it sounds like those affected will at least be assisted as they exit, but now would probably be an opportune time to shed a tear for UIQ as we knew it.
AT&T has announced plans to cut 1.5 percent of its workforce of 309,000. Sad times ahead for the company? Not quite. Apparently the 4600 jobs will be harvested from managerial spots in its flagging wired home phone business, so no worries, wireless types. Now here's where it gets interesting: word has it that AT&T also expects to hire back that same number of employees into the fold -- the wireless fold, that is -- keeping the total headcount nice and steady. We'd wager that we'll see more cuts like this in the coming months and years, so if you were pondering that job as a switchboard operator, time to retrain. So yeah, turns out it's business as usual for the number one carrier after all -- unless you happen to be in the 4600-strong group of obsoleted folks, that is.
The tough times just don't seem to end at Motorola -- the company announced today that it's laying off another 2,600 workers, for a total of 10,000 positions eliminated since the start of 2007. That's on top of the various high-level executive departures that have been taken place lately, not to mention the company's plan to split off its mobile phone business, which will undoubtedly lead to more cuts down the line. The goal is to reduce costs by some $500M by the end of the year, and some of the jobs being lost come as Moto closes a factory in Singapore and a WiMAX development lab in Florida. There's no word on when the cuts are going to come, but here's hoping all these aggressive steps lead to a little vacation for Sad Moto here.
The Register is reporting that Motorola's outpost in Birmingham, England has officially been placed on death row this week, with its 121 staff ominously being told that they're "at risk for redundancy." We're pretty sure that's code for "we think someone else is already doing your job, but we need to confirm that and get back to you," so in the meantime it seems like a brilliant idea for the so-notified folks to prep their CVs and hightail it outta there. To be fair, Moto is apparently going to start by trying to offer relocation or work-from-home deals for some of the Birmingham peeps, but it seems that it's a best-case scenario. Even worse, the office is a Moto design center; correct us if we're wrong, but we don't think you turn around a struggling phone manufacturer by killing off design, right?
No stranger to layoffs, rumor has it that Moto has laid off more than 200 additional folks recently in its home town of Schaumburg, Illinois, with the customer service, mobile, and lab departments taking the bulk of the hit. Now, we figure there are two ways to look at this: one, the layoffs aren't over at the world's number three manufacturer -- or two, they're starting to taper off. Take your pick.
So apparently, that whole "plan to shut down a Bochum Nokia plant" didn't exactly sail over everyone's heads, particularly not in Germany. Reports are now flowing out that unions in the nation are taking it upon themselves to urge consumers not to purchase wares from the firm, with Dietmar Muscheid, regional head of the Confederation of German Unions (DGB), being one of the most vocal. Muscheid went on to state that "whoever buys a cellphone today should think about the choice they are making and what catastrophic consequences the company's actions in Bochum will have for thousands of workers." 'Course, the EU has already proclaimed that Nokia won't be getting a dime in relocation (to Romania, supposedly) aid, but unspecified government officials are reportedly lined up to speak with suits from the handset maker later this week to "discuss the plant's future." Whether or not all this commotion will actually change any minds, however, remains to be seen.
We haven't heard any confirmations of this just yet, but PalmInfocenter has it that a number of Palm employees have already been shown the door and asked not to come back. Citing "reliable sources," it goes on to mention that the layoffs could reach beyond North America and could affect "hundreds" of employees. 'Course, the past few
Recognizing that its first round of 3,500 job cuts wasn't enough to bring it back into the black, Moto has announced -- as expected -- a second round of layoffs to the tune of 4,000 axed positions. Ultimately, the company expects to save $600 million from the new cuts after they've been bunched in with "prioritization of investments, continuing discretionary-spending controls, general and administrative expenses and site rationalization" (whether any of that verbage actually means anything, we don't know, but it certainly sounds frugal). For the record, the first 3,500 cuts are apparently on track to be completed by June 30, but with newly-announced "restructuring charges" totalling $300 million, it's anybody's guess whether these moves are ultimately going to make America's only top five manufacturer profitable again.





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