Motorola Lays Off a Further 1,600 Staff

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In a SEC filing late on Friday, Motorola announced that it had laid off a further 1,600 employees during the 4th quarter of last year and was taking a pre-tax charge of US$90 million in costs. The charge is comprised of $90 million in charges for severance costs and $9 million of exit costs for leased facilities associated with the cost-reduction initiatives described above, partially offset by $9 million of reversals for accruals from prior periods that are no longer needed.
During the first nine months of 2007, Motorola took charges of US$311 million representing severance costs for approximately 5,100 employees.
All of the above estimated charges are expected to result in future cash expenditures during 2008. All three of the Company’s business segments, as well as various corporate functions, are impacted by these plans.
Posted to the site on 6th January 2008