Mobile phone maker Motorala will cut 400 more jobs and expects to incur charges worth $189 million related to cost reduction measures
in the fourth quarter.
Earlier in October, the firm had said it would reduce the workforce by about 1,500 employees, mainly in the Mobile Devices segment. The move would result in pre-tax charges of 104 millions dollars in the fourth quarter.
Motorola in a filing to the Securities and Exchange Commission on Tuesday said the company would terminate nearly 400 employees, which would result in charges of about 25 million dollars in the fourth quarter.
“On December 23, 2008, the company approved certain additional plans relating to these cost-reduction initiatives.
These additional actions, plus other actions approved since October 30, 2008, relate to the termination of approximately 400 employees, resulting in additional pre-tax severance charges of approximately 25 million dollars in the fourth quarter of 2008,” the filing noted.
The cell phone maker said these actions would result in total pre-tax charges to the tune of 189 million dollars in the fourth quarter.
“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,” the filing pointed out.
Motorala reported a net loss of 397 million dollars in the third quarter whereas the company had a net profit of 60 million dollars in the year-ago period.
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