Motorola Posts Loss; IBM Layoffs

By Chris Preimesberger  |  Posted 2009-02-13 Print this article Print

Motorola Posts a Quarterly Loss, Faces Stiff Competition in 2009

Motorola forecast a deeper-than-expected first-quarter loss, suspended its quarterly dividend, and said it was looking for a new chief financial officer, sending its shares down 10 percent.

The embattled cell phone maker slid to fifth place from fourth in global rankings in the last quarter, and said on Tuesday it expects its handset division to post a loss in 2009.

IBM Still Mired in Layoff Spiral

IBM continues to lay off employees and to take heat from employee groups for its practice of not providing more information such as exact numbers or other particulars on the layoffs. The word is IBM has eliminated nearly 5,000 positions since the action began in January, according to sources.

An IBM employee organization called Alliance@IBM says IBM has laid off more than 4,800 people, including 1,449 in Sales and Distribution, 1,419 in the IBM Software Group, 1,200 in IBM's Systems and Technology Group, 307 in IBM Finance, 193 in IBM Research, and 92 in human resources.

Meanwhile, according to reports, IBM has an effort called "Project Match" that aims to help IBM employees in the United States and Canada move overseas to work for IBM, or essentially "offshoring" themselves.

Report: Virtualization Sector to Grow 43 Percent in 2009

Despite the recession, global revenue from the sector will surpass $2.7 billion by the end of the year. The biggest market driver? Enterprises' need to reduce the total cost of ownership of its IT systems; green IT is a welcome byproduct.

Intel Investing $7 Billion in U.S. Manufacturing Facilities

Intel plans to invest $7 billion over the next two years to build and update its U.S. manufacturing facilities in order to ramp up production for the company's new line of 32-nanometer processors - a vital component for the still-growing "netbook" market as well as for future generations of desktops, laptops and servers.

Intel's investment is a breath of fresh air at a time that other companies, including Panasonic, have cut back on jobs and costs.

Report: SMBs Add Employees, Cut Salaries in January

Despite a worsening economic outlook and massive layoffs at enterprise-level organizations, small and midsize businesses managed to add new employees in January, based on a survey of 20,000 small businesses conducted by online payroll service SurePayroll.

The company's hiring index rose to 11,306 in January, up from 11,274 at the end of December. This represents a 0.3 percent increase in the average small-business size, meaning that the average small business grew in size in January. However, the hiring growth has been flat of late, with the last five months all being in the 0.2 to 0.3 percent range.

Chris Preimesberger Chris Preimesberger was named Editor-in-Chief of Features & Analysis at eWEEK in November 2011. Previously he served eWEEK as Senior Writer, covering a range of IT sectors that include data center systems, cloud computing, storage, virtualization, green IT, e-discovery and IT governance. His blog, Storage Station, is considered a go-to information source. Chris won a national Folio Award for magazine writing in November 2011 for a cover story on and CEO-founder Marc Benioff, and he has served as a judge for the SIIA Codie Awards since 2005. In previous IT journalism, Chris was a founding editor of both IT Manager's Journal and and was managing editor of Software Development magazine. His diverse resume also includes: sportswriter for the Los Angeles Daily News, covering NCAA and NBA basketball, television critic for the Palo Alto Times Tribune, and Sports Information Director at Stanford University. He has served as a correspondent for The Associated Press, covering Stanford and NCAA tournament basketball, since 1983. He has covered a number of major events, including the 1984 Democratic National Convention, a Presidential press conference at the White House in 1993, the Emmy Awards (three times), two Rose Bowls, the Fiesta Bowl, several NCAA men's and women's basketball tournaments, a Formula One Grand Prix auto race, a heavyweight boxing championship bout (Ali vs. Spinks, 1978), and the 1985 Super Bowl. A 1975 graduate of Pepperdine University in Malibu, Calif., Chris has won more than a dozen regional and national awards for his work. He and his wife, Rebecca, have four children and reside in Redwood City, Calif.Follow on Twitter: editingwhiz

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