Motorola to 400 Employees: Looks Like We, Heh-Heh, Forgot to Fire You
by John Paczkowski
Posted on December 31, 2008 at 1:44 PM PT
Earlier this year, Motorola (MOT) said it would sack 1,500 employees during the fourth quarter of 2008. Apparently, that was a mistake.
What it meant to say was that it planned to sack 1,900 employees during the fourth quarter of 2008, as evidenced today by the company’s announcement that it will lay off 400 more employees than originally expected this year. It should be noted, though, that these positions are part of the cost cutting actions previously announced in October.
“On December 23, 2008, the Company approved certain additional plans relating to these cost-reduction initiatives,” Motorola said in an SEC filing. “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 in the fourth quarter of 2008.”
What a nasty shock for those 400 employees who thought their jobs would survive through to the new year, eh? The elimination of their positions brings the total number of employees laid off at Motorola to about 12,000 since the beginning of 2007. 2009 isn’t looking too promising for the struggling handset maker, which is already heading into the new year with a junk credit rating amid a chorus of analyst skepticism.
Comments
The downward momentum for Motorola has gained new speed in recent months. There seems to be no stopping this legacy telecom company from reaching the absolute bottom of its current trajectory.
Posted by David H Deans at January 1st, 2009 at 8:16 am