Motorola To Trim 1,000 Jobs

The move is sparked by the spinout of its Freescale Semiconductor subsidiary.
Posted September 28, 2004
By

Colin C. Haley


Motorola said it would cut 1,000 jobs, a move prompted by the spinout of its Freescale Semiconductor subsidiary.

The company expects to pay $50 million in severance from the beginning of the third quarter of 2004 through the first quarter of 2005 as part of the plan, which impacts about 1 percent of the company's workforce.

In addition to corporate posts, the layoffs will hit three of Motorola's business segments: Commercial, Government and Industrial Solutions; Integrated Electronics Systems; and Broadband Communications, the company said in a regulatory filing.

"Motorola continues to retain and attract top talent in fields critical to Motorola, such as engineering, marketing, technology and finance -- in all of Motorola's businesses," Jennifer Weyrauch, a company spokeswoman, told internetnews.com.

Because other hiring could offset the cuts, the Schaumburg, Ill.-based company's 88,000-person workforce may not decrease as a result of the announced reductions.

The cuts come nine months after the handset and wireless networking giant hired former Sun Microsystems president Ed Zander to turn the company around.

Motorola made news on two other fronts today, as well. First it disclosed that it received $218 million in proceeds from the sale of shares in Nextel Communications .

Second, the company's venture capital arm made an undisclosed investment in Bluefire Security Technologies. The Baltimore-based company will use the backing to accelerate development of its Mobile Firewall Plus suite of security applications.

When installed on a handheld, Bluefire said its software provides authentication, encryption and an integrated mobile Virtual Private Network and firewall, without consuming significant processor resources or memory.






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