Motorola Adds 400 Pink Slips

by Ken Schachter on 31 December 2008, 14:27

Categories: Archives - Computers - General news - Media - Communications - Internet
Topics: google , apple , motorola , samsung , layoff , LG , iPhone , Jha , Greg Brown

 
Mobile device maker Motorola has disclosed plans to trim 400 more jobs, adding to the planned 3,000 layoffs announced in October.

In a filing with the Securities and Exchange Commission, Motorola said the 400 additional job cuts would be added to the 1,500 workers to be axed in the fourth quarter of 2008 and bring total pre-tax charges related to cost containment to about $189 for the period.

In Wednesday afternoon trading, shares of Motorola climbed $.28, or 6.7 percent, to $4.44.

The maker of Razr mobile phones has been losing market share to Korean manufacturers as well as Apple’s iPhone and phones powered by Google’s Android operating system. Earlier this month, researcher MultiMedia Intelligence predicted that Motorola would retain its status as the No. 1 provider of consumer handsets in the United States with 21 percent the market in 2008, but would be passed by South Korea’s Samsung and LG in 2009.

In October, Schaumberg, Illinois-based Motorola cut it’s fourth quarter earnings forecast and postponed the planned spin-off of its cell phone unit.

Two weeks ago, Motorola said it would suspend its match for employees’ 401 (k) retirement plans and cut the salaries of its co-chief executives, Greg Brown and Sanjay Jha.