Moto Speeds Up Layoffs
Motorola said in October that it planned to cut a total of 3,000 jobs, with 1,500 coming in the fourth quarter. That number has now been increased to 1,900, according to documents filed with the Securities and Exchange Commission (SEC) and a Reuters report. The overall planned job cuts haven't been increased, however. (See Sanjay Jha Makes His Mark at Moto.)
The initial cuts are going to come mainly from the firm's struggling mobile devices unit. The Schamburg, Ill.-based networking firm had been looking at the third quarter of 2009 as the target date for a possible spinoff of the business. Economic troubles and a restructuring of the unit are causing the company to rethink that date. (See Motorola Delays Devices Unit Spinoff.)
Motorola also made cuts in its video division late last year. (See Moto Trims Video Division .)
Motorola announced in December that it will permanently freeze its U.S. pension plans from March 2009, while temporarily freezing its matching contributions to employee's 401K plans. (See Moto Freezes Benefits, Salaries.)
Motorola's shares were trading up today $0.12, or 2.71 percent, at $4.55.
— Dan Jones, Site Editor, Unstrung