Motorola has announced plans to cut a further 400 jobs on top of the 1,500 cuts announced in October. The earlier termination of approximately 1,500 employees, primarily in the Mobile Devices segment, and will result in pre-tax charges of $104 million in the fourth quarter of 2008.
The company warned at the time that further job cuts might occur - and has announced in an SEC filing that it will terminate approximately additional 400 employees, resulting in additional pre-tax severance charges of approximately $25 million in the fourth quarter of 2008.
These additional actions also include other exit-related activities, including the termination of leases and other contractual commitments and asset impairments, resulting in additional pre-tax charges of approximately $60 million in the fourth quarter of 2008.
Together with the actions announced in the Company's Form 10-Q filed on October 30, 2008, these additional actions bring the total pre-tax charges in the fourth quarter of 2008 related to previously announced cost-reduction initiatives to approximately $189 million. Cash payments associated with these actions have occurred in the fourth quarter of 2008 and will occur in 2009. All of the Company's business segments, as well as various corporate functions, are impacted by these plans.
Posted to the site on 31st December 2008
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