Coming on the heels of a general company-wide layoff program that envisions reducing staff by 48,500 from the 150,000 that existed in August 2000, 20 percent of 600 executives will be cut as well. Executive officer numbers remained constant while sales dropped more than 20 percent. Motorola was considered "top heavy" compared to its competitors. It is hoped that as a result of the cuts, Motorola will be more agile and responsive as a firm. Ed Breen, who became president and chief operating officer on January 1, takes responsibility for the action.
See "Motorola to cut fifth of execs.", Rob Kaiser, Chicago Tribune, January 7, 2002