Technology titan Motorola has reacted swiftly to worldwide economic anxiety by slashing a minimum $250 million from its global ad budget.
The $350m set aside for advertising has, according to an anonymous insider, been drastically reduced to under $100m, a cut of 70%. Motorola’s decision follows its axing of a further 4,000 jobs last week, bringing the total number of recent layoffs to 22,000.
The remaining ad budget will, says the informant, be ploughed into global brand and retail advertising. Last September, Motorola consolidated its worldwide duties at Ogilvy & Mather Worldwide in New York [WAMN: 15-Sep-01].
Motorola has yet to confirm the scale of the cuts, although Greg Nelson, corporate vp–marketing at the semi-conductor products arm, has admitted that global adspend has been reduced.
News Source: AdAge Global