Motorola's Scanlon quits for start-up; move could disrupt restructuring plans

Article Abstract:

Motorola senior executive Jack Scanlon is stepping down to become CEO of telecommunications start-up Global Crossing. Scanlon's surprise departure, effective today, could badly disrupt Motorola's major corporate restructuring plans because of his broad telecommunications experience. Motorola CEO Christopher Galvin had intended to place Scanlon and company European operations head Merle Gilmore in charge of the company's proposed two huge divisions, according to informed individuals. Scanlon would have supervised the division geared toward industrial customers, which would handle about 50% of Motorola's $29.8 billion in annual revenue. Motorola may have to hire an outside replacement or possibly delay its expected restructuring, which is expected to be announced within the next several weeks. Global Crossing is a privately-held developer of undersea fiber-optic telecommunications systems.

Officials and employees, Telecommunications services industry, Telecommunications industry, Global Crossing Ltd., Company executive, Computer executives, Galvin, Christopher B., Company Business Management

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Motorola prepares major restructuring: two divisions to be created, splitting consumer lines from infrastructure gear

Article Abstract:

Motorola is planning to merge about six businesses into two huge divisions, according to insiders. Part of the major corporate restructuring entails combining the operations that build infrastructure products for paging, two-way radio and cellular telephones into an industry division. Plans also call for the creation of a separate consumer division for sales of consumer devices like cellular-telephone handsets and pagers, according to the insiders. Motorola will keep separate its large semiconductor operation, reorganized in 1997, and much smaller automotive and space groups. The Motorola paging, cellular and two-way radio operations, which currently operate as separate company 'segments,' accounted for $20.6 billion of Motorola's $29.8 billion in 1997 sales. Each segment contains its own infrastructure and consumer sectors, as well as technology-development and sales forces.

Cellular telephone equipment industry

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Motorola's prospects are linked to new technologies; electronics giant has large, risky bets riding on unproven products

Article Abstract:

Motorola officials insist that investor concerns and increasingly negative analyst speculations are unfounded and fail to consider the long-range development and business strategies of the company. Motorola posts 1st qtr 1996 earnings of $384 million, higher than most Wall Street forecasts, but Motorola's profit margin continues to decline in its important cellular phone and semiconductor markets. If Motorola executives are correct in suggesting that the company will regain its strong growth rate by 1997, the company will largely have to do so behind the success of risky technologies. Motorola has heavy investments in unproven technologies such as hyper-speed cable modems, an Iridium satellite venture, code division multiple access, two-way paging and developing cellular equipment.

Planning, Company investment, Investments, Telecommunications equipment industry, Company analysis, Company business planning

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