Motorola Cutting 1,900 Jobs Globally
Wednesday October 5, 2:28 pm ET
Motorola Is Cutting 1,900 Jobs Globally in Effort to Improve Operating Efficiency
SCHAUMBURG, Ill. (AP) -- Motorola Inc. is cutting 1,900 jobs at 29 different U.S. and international locations in an effort to improve operating efficiency, the company said Wednesday.
The cell-phone maker said the layoffs will be distributed over its facilities in more than 20 countries and began in July, when it announced a planned consolidation of its supply chain facilities over the next several years.
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Motorola's work force will remain at about 68,000 since it is simultaneously adding staff in such areas as engineering and marketing, spokeswoman Jennifer Weyrauch said.
"This is about operating more efficiently and delighting our customers, it's not about a significant change in head count," she said.
Motorola said in a filing with U.S. Securities and Exchange Commission late Tuesday that it will take third-quarter charges totaling about $70 million, pre-tax, for severance and $20 million of asset impairments associated with the moves.
Among the affected sites are Motorola's manufacturing plant in South Korea, which is being shifted to a design center, and a distribution and service center in Elgin, Ill., which also is being turned into a design facility. Some of those employees will be relocated to other Motorola facilities, the company said.
Motorola shares fell 17 cents to $22.15 in afternoon trading on the New York Stock Exchange. They are up 29 percent in 2005.
motorola.com
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