Motorola cuts additional 2600 jobs from workforce

Motorola today announced it would terminate an additional 2600 jobs from its workforce, bringing the current total of layoffs to 10,000 since the beginning of 2007. According to The Wall Street Journal, Motorola comes up against increased pressure in the face of declining cellphone sales, of which it recently lost its coveted second tier position in worldwide handset share to Samsung, a move that caused Motorola's sales to fall 38 percent in year-over-year quarterly profits.

The layoffs will cost Motorola $104 million in severance costs, with an additional $9 million in reversals for accruals. Motorola reveals that this is merely one stage of a $500 million cost-reduction effort planned for the year.

"The work-force reductions are intended to make financial resources available for strategic business investment, while better aligning operational costs and expenses with business growth," commented the telecommunications giant.

Among the 2600 jobs – which stem from Motorola's three business sectors – 700 will come from the company’s termination of Singapore-based operations, as well as 354 from its Plantation, Florida office, where it focused efforts on the impending WiMAX technology.

Filed under: industry
Other story tags: Motorola, sales, cellphone, layoffs