Motorola says to take $104 million charge for job cuts

NEW YORK (Reuters) - Mobile phone maker Motorola Inc (MOT.N) said on Thursday it will take a $104 million pre-tax charge in the first quarter related to severance charges for 2,600 employees.

The company said the charge included $113 million in severance costs, offset by $9 million in reversals of accruals from previous periods.

Motorola has been trying to revive its business after losing market share to rivals such as Nokia Oyj (NOK1V.HE) and Samsung Electronics Co Ltd (005930.KS).

It said all of its business segments will be affected by these severance plans.

Motorola shares, which closed up 1.66 percent at $9.77, were at around $9.75 in after-hours trade.

The company said late last month that it would split into two publicly traded entities in 2009, separating its money-losing handset division from the rest of the business, which makes television set-top boxes and network equipment. (Reporting by Ritsuko Ando; editing by Gunna Dickson)