More layoffs coming...
biz.yahoo.com
Motorola Provides Update on Cost-Reduction Initiatives
Wednesday May 30, 4:31 pm ET
SCHAUMBURG, Ill., May 30 /PRNewswire-FirstCall/ -- Motorola, Inc. (NYSE: MOT - News) today provided an update on its cost-reduction initiatives that the company committed to during the first quarter of 2007. The company said it is on target to achieve the $400 million in annualized cost savings that it announced in January. The company noted that its previously announced workforce reduction of 3,500 will be completed on schedule by June 30.
In addition, after a comprehensive business review by the senior management team, the company expects to achieve another $600 million in annualized cost savings in 2008 through a combination of an additional workforce reduction of approximately 4,000, prioritization of investments, continuing discretionary-spending controls, general and administrative expenses and site rationalization.
"Long-term, sustainable profitability is -- and always has been -- Motorola's top priority," said Tom Meredith, chief financial officer, Motorola, Inc. "Today's actions are an update to the commitment we made during our first-quarter earnings conference call -- to drive out additional costs -- and a continuation of the plan we announced in January. We are confident that the steps we are announcing today, together with the actions that we have outlined previously, will further improve the company's financial and operational performance and create value for our stockholders."
"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," said Greg Brown, president and chief operating officer, Motorola, Inc.
In connection with today's announcement, the company expects to record additional restructuring charges of approximately $300 million, or approximately $0.08 per share. The charges are expected to be incurred over the remainder of 2007 and will consist primarily of severance and related expenses resulting from the workforce reductions. |
