More Jobs Go at Motorola

Motorola said it expects to incur a net pretax charge of $101m in the second quarter in connection with envisioned workforce reductions of 4000 staff an act saving $600m as part of its cost-cutting response to recent poor results.
The world’s second-biggest mobile-phone maker has been cutting jobs in an effort to reduce costs as it has lost market share to rivals, possibly due to an over reliance on the success of the RAZR line which Moto have been unable to reproduce with other ranges.

In a filing with the Securities and Exchange Commission last week, Motorola said the total consists of $115 million in layoff-related charges and $14 million in reversals for prior-period accruals that it no longer needs.

Moto said in May that it would complete a plan to get rid of 3,500 employees by the end of June. Moto also said it would also be showing the door to another 4,000 staff.

That means the No. 2 handset maker will have slashed more than 10% of its workforce since the start of 2007. As recently as 2000, Motorola employed 150,000 people worldwide; that had declined to 66,000 by the beginning of the year. This spring, Motorola posted its first quarterly loss since 2004 and the company has already warned that results from the April-June quarter will not be good.

The following two tabs change content below.