Expecting Q4 loss, Moto lays off 4,000
Motorola said it is going to report a fourth-quarter loss and announced a new round of cost reductions that will include the layoff of up to 4,000 employees.
Three-quarters of those layoffs will be in the company’s Mobile Devices business. The balance will be in corporate offices and in other business units.
Motorola spokespersons were not available for comment on whether the cuts would affect the company’s Home and Networks Mobility business, responsible for most cable and IPTV products.
The company said, however, that its Enterprise Mobility Solutions and Home and Networks Mobility businesses continued to perform well in a challenging environment. “Our Broadband Mobility Solutions businesses remain strong, are substantial franchises and are continuing to perform very well,” according to co-CEO Greg Brown.
The workforce reductions announced today are expected to begin immediately, Motorola said, and are incremental to the 3,000 workforce reduction actions previously announced in October.
Motorola still plans to sell its handset unit, which continues to be a drag on company results. The company said it expects to report a loss of 7 or 8 cents per share.
\Charges for the quarter include impairments of Motorola’s investment in Clearwire and investments in the Motorola Ventures portfolio; a previously disclosed impairment in the company’s Sigma Fund, offset partially by a gain from the decision to freeze the U.S. pension plan; and income from the collection of a legal settlement and the extinguishment of a liability, according to the company.
In December, changes to investment plans, along with a company-wide salary freeze and salary reductions for co-CEOs Greg Brown and Sanjay Jha, were announced (story here).
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