Motorola to Cut 4,000 More Jobs5/30/2007 5:37 AM Eastern
Motorola said Wednesday that it will cut another 4,000 jobs -- beyond the 3,500 the company expects to eliminate by June 30 -- after its senior management team engaged in a “comprehensive business review.”
Motorola spokeswoman Jennifer Erickson said the job cuts will affect all divisions of the company, including the Home and Networks Mobility group (formerly the Connected Home Solutions group) that serves the cable industry. She added, however, that the company is continuing to hire in “critical areas.”
The company said the latest job cuts -- along with other measures including prioritization of investments, discretionary-spending controls and site rationalization -- will save $600 million annually in 2008. At the end of 2006, Motorola had 66,000 employees; the combined job cuts represent about 11% of that total. In January, Motorola said the initial reductions would save $400 million over two years.
"We are taking steps to ensure that, as these cost reductions are implemented, there will be no adverse impact on customer service and support, product quality and those research-and-development programs that are expected to contribute meaningfully to Motorola's revenues, profits and cash flow in 2008 and beyond," Motorola president and chief operating officer Greg Brown said in a prepared statement.
Motorola expects to record restructuring charges of approximately $300 million over the remainder of 2007, which will consist primarily of severance and related expenses resulting from the work-force reductions.