Normally when a company keeps replacing senior management it is a sign that upcoming quarters are not likely to be stellar. Over the weekend Motorola (NYSE: MOT) pushed out some key people.
The company is bringing in a private equity executive to be treasurer. It is also replacing the head of its Europe, Middle East and Africa cell phone operations. According to The Wall Street Journal the company said "the leadership changes are part of an overall plan to swiftly transform the senior executive team."
Motorola has been trying, unsuccessfully, to sell its handset division, probably to a rival like Samsung. It now appears that the firm will have to work its way out of trouble. That means that executives in areas where the company is doing poorly could all be out in the next several months.
Motorola's share of the global handset market has dropped from 22% two years ago to about 12%. It does well in North America, but sales overseas have been weak as the popularity of its Razr phone has dropped.
Motorola could lose several billion more dollars in handsets and the turnaround could take a year or more, if it ever happens. In the meantime, stockholders are dead.
Douglas A. McIntyre is an editor at 247wallst.com.
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Reader Comments (Page 1 of 1)
3-17-2008 @ 10:34AM
roudy11z said...
As my dear father once said "WE SHALL SEE".
RoudMan