Motorola Cuts Another 2,600 Jobs

Thu Apr 3, 2008 9:55 PM EDT
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SCHAUMBURG — Beleaguered cell phone maker Motorola Inc. said Thursday that it is laying off another 2,600 workers, bringing the company's total employee cuts to more than 10,000 since last year.

Motorola will take a pretax charge of about $104 million in the first quarter for severance costs from the new layoffs, the company said in a filing with the Securities and Exchange Commission. The Schaumburg-based company said $113 million in severance charges will be partly offset by $9 million in reversals for accruals from prior periods that are no longer needed.

Last week, Motorola bowed to pressure from investors and said it will split off its troubled cell phone business and form two separate, public companies.

Motorola said it would eliminate 3,500 jobs in January 2007 as part of a two-year cost-cutting plan to save $400 million. The company announced cuts of another 4,000 jobs in May 2007 with hopes of improving its sagging financial and operational results.

The world's No. 2 handset maker has eliminated more than 10 percent of its work force since the start of 2007, when it became clear that two years of strong momentum behind the popular Razr phone had collapsed.

Motorola's shares slid 12 cents to $9.65 in after-hours electronic trading Thursday. The stock had closed up 16 cents at $9.77 in the regular session.

The company is expected to release its full first-quarter financial results April 24.

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{"commentId":1658542,"authorDomain":"ruckspin"}
ruckspin

The mobile phone world is fast moving and Motorola do not make the handsets that people want, they had great success with the razr but took their eye off the ball and have lost a lot of ground. People do not always need a 5mp camera but that is one of the first things people look at. I love Motorola's and they have some great features but I am not everybody they need to get with the programme, they make some very good headsets, they have just got to do that with the handsets. Come on Motorola give us something to shout about.

Teddy Ruckspin

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    Reply#1 - Sat Apr 5, 2008 10:10 AM EDT
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