Motorola Posts Loss; IBM Layoffs
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.