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Motorola speeds up layoffs, adds to 4th-qtr charge
December 30, 2008 / 11:45 PM / 9 years ago

Motorola speeds up layoffs, adds to 4th-qtr charge

SAN FRANCISCO, Dec 30 (Reuters) - Mobile phone maker Motorola Inc MOT.N said on Tuesday it will lay off 400 more employees in the fourth-quarter than it originally planned, resulting in additional charges.

In October, Motorola announced a cost-reduction plan that included cutting a total of 3,000 jobs, with 1,500 coming in the fourth quarter. The change means 1,900 will be in the fourth quarter although the overall total will not change.

The plan is intended to save the company $800 million in 2009. The fourth-quarter job cuts, primarily from the mobile devices segment, were expected to result in charges totaling $104 million.

In a filing with the U.S. Securities and Exchange Commission Tuesday, the company said it has since approved plans to cut another 400 jobs in the quarter. Motorola now expects $189 million in charges in the period related to its cost-cutting initiative.

In the filing, Motorola said “all of the company’s business segments, as well as various corporate functions, are impacted by these plans.”

Earlier this month, Motorola said it would suspend contributions to its 401(k) worker retirement plan, freeze its pension plan, stop some pay increases and cut the salaries of its two top executives.

Shares of Schaumburg, Illinois-based Motorola closed up 11 cents at $4.16. (Reporting by Gabriel Madway; editing by Gunna Dickson)

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