Motorola to Cut Jobs, Take $104 Million Charge
Mobile phone maker Motorola said after U.S. markets closed Thursday that it was cutting jobs and paying severance payments to around 2,600 workers, resulting in a net pre-tax charge in the first quarter of around $104 million.
The company said the charge included $113 million in severance costs, offset by $9 million in reversals of accruals from previous periods.
Motorola has been trying to revive its business after losing market share to rivals such as Nokia and Samsung Electronics.
It said all of its business segments will be affected by these severance plans.
Motorola shares were down about 2 percent Friday.
The company said late last month that it would split into two publicly traded entities in 2009, separating its money-losing handset division from the rest of the business, which makes television set-top boxes and network equipment.