Motorola To Cut 1,900 Jobs - InformationWeek

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10/6/2005
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Motorola To Cut 1,900 Jobs

The layoffs will hit 29 locations in 20 countries, and all four of Motorola's divisions will be affected.

LONDON — Motorola plans to cut 1,900 jobs world-wide as part of a drive to improve manufaturing and supply-chain efficiencies.

The job losses will hit 29 locations in 20 countries. All four of Motorola's business divisions - Mobile Devices, Networks, Government & Enterprise Mobility Solutions, and Connected Home Solutions - will be affected.

One of the worst impacted facilties is expected to be the company’s Customer Fulfilment Center in Elgin, Illinois, which distibutes and repairs a variety of communications equipment. The facility is being sold to a long-term Motorola partner, Communications Test Design Inc. of West Chester, PA.

A manufacturing plant in South Korea is also being altered to act as a design centre.

Some of the Motorola employees based at Elgin will be moved to other facilities in the area. The company also stressed that it is still continuing to hire people in engineering and marketing functions, and that once the latest restructuring is completed, it will still employ 68, 000 people worldwide.

Motorola revealed in a filing to the U.S. Securities and Exchange Commission that it would take a $90 million charge in its third quarter related to the restructuring, $70 million for severance payments and a further $20 million to write off assets.

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