Downsizing, which is also known as layoff, is defined by wikipedia as either the temporary removal or suspension or the permanent termination of an employee in a certain job.
This is done mostly for cost-cutting reasons.
One company that recently downsized its workers was Motorola Inc. The company downsized 2,600 workers across the company in the world which resulted in a $104 million pretax charge in the first quarter.
The reason for this downsize was that this was a part of a plan to cut cost by $500 million this year. The higher ups in the company disclosed the cost reducing-program at the start of 2008 and and they announced that it could mean job losses. Motorola's head count totaled 66,000 at the end of 2007, which is according to the annual report filed on February. The company reported its second-quarter earnings on April 24, 2008 and expecting a further decline in its sales and global market for its cell phone unit. The company previously announced that it was planning to split its handset division into an independent, publicly traded company.
The majority of the 2600 workers came from Asia, most notably from Singapore, where the company is planning to halt the cell phone manufacturing by the end of this year. It was stated in their 2007 annual report that Singapore, China and Brazil, are the company's largest cell phone manufacturing facilities, and most of their hand set products are made in Asia.
Since becoming the chief executive on January this year, Greg Brown, he restructured marketing operations with its chief marketing officer leaving the company. Also on February this year, he took control of the cell phone unit and hired new heads of office of finance and human resources.
Sources:
Chicago Tribune
Downsizing
Motorola April 2008 Financial Report
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