Mobile handset firm, Motorola, will be slashing 1,900 jobs across the world in efforts to augment efficiencies in production as well as supplies.
To be affected at 29 sites over 20 nations, all the four sections of Motorola, i.e. Mobile Devices, Networks, Government & Enterprise Mobility Solutions, and Connected Home Solutions will be bearing the brunt.
However, the division that is likely to feel the maximum heat is Motorola’s Customer Fulfilment Center based in Elgin, Illinois. Elgin, which is responsible for the distribution and servicing of a range of communications equipment, will now be sold off to Communications Test Design Inc. of West Chester, PA, an old business partner of handset firm. In addition, Motorola’s manufacturing plant at South Korea would be modified to function hereon as a centre for design.
Meanwhile, Motorola said that while recruitment at its engineering and marketing segments would carry on, it would still be employing about 68, 000 people globally after this restructuring exercise.
The company simultaneously made public its filing to the U.S. Securities and Exchange Commission for $90 million as charges for the third quarter on account of the restructuring. This amount comprised of $70 million as pre-tax severance charges, along with another $20 million meant to write-off assets.
Director of corporate communications at Motorola, Jennifer Weyrauch, stated clearly that job cuts would be affected as soon as its annual financial analyst meeting this year. However, she also assured that after this, no further job cuts would be carried out right away.
Posted
on : Fri, 07 Oct 2005 15:50 GMT | Business News
By : Rob Davis
|
