Devices chief leaves Moto
10 March 2008
Devices chief leaves Moto
The executive exodus continued at Motorola towards the end of last week, with Stu Reed, president of Motorola's Mobile Devices business, the latest to announce his departure.
Reed and his team launched a number of key handset initiatives, which Moto said it will continue to expand upon.
He is credited with leading the transformation of the company's supply chain organisation, as well as generating significant cost savings by consolidating suppliers.
Reeds departure is effective immediately and comes in the same week marketing chief Kenneth Keller also announced his departure.
Motorola's president and CEO, Greg Brown, recently announced that the company is considering spinning off its beleaguered Mobile Devices business from the rest of the group.
Since the heady days of the [first] RAZR super hit, back in 2005, the handsets division has consistently underperformed, failing to come up with another blockbuster device. Fourth quarter sales at the Mobile Devices division were down 38 per cent to $4.8bn with operating loss dropping to $388m, compared with operating earnings of $341million in the year ago quarter. During the last three months of 2007, the company shipped 40.9 million handsets.
For the full year, Motorola in its entirety, recorded a net loss of $49m, compared to a profit of 3.6bn in 2006, largely due to the ailing devices segment.
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