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Motorola announces 4,000 more layoffs

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Schaumburg, Ill.—Motorola Corp. Wednesday announced 4,000 new layoffs, in addition to 3,000 job cuts it announced in the fourth quarter.

The new round will include about 3,000 positions in the company’s mobile devices business unit and approximately 1,000 in corporate and other business units. The cuts will take place beginning immediately.

Motorola said the work force reductions, plus other incremental cost-cutting initiatives, are expected to result in additional cost savings of about $700 million this year.

In December, Motorola announced several cost-cutting measures, including a co-CEO pay cut of 25%, a wage freeze for employees in some markets and a halt to matching contributions in the company’s 401k plan.

The savings from these actions, together with $800 million in savings from others announced during the fourth quarter, are expected to result in aggregate cost savings of $1.5 billion for the company this year.

“The actions we are taking today in our mobile devices business will allow us to further reduce our cost structure and position us for improved financial performance in 2009,” said Co-CEO Sanjay Jha.

—Kate Maddox

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