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Motorola charged $101M due to job cuts

Posted: 09 Jul 2007 ?? ?Print Version ?Bookmark and Share

Keywords:Motorola job cuts? handset market? mobile handsets?

Handset maker Motorola Inc. disclosed it expects to incur a net pretax charge of $101 million in Q2 as a result of its work-force reductions, according to a Reuters report. Motorola said the $115 million in related charges were slightly offset by $14 million in reversals for accruals from prior periods that were no longer needed, bringing the net amount to $101 million.

The company has been cutting jobs to reduce costs as it lost market share to rivals such as Nokia Oyj in recent quarters.

Motorola initially announced 3,500 job cuts and revealed May 30 plans for another 4,000. The company said it would take restructuring charges of $300 million, or 8 cents per share, for the rest of 2007 due to the cuts.

Most of the affected employees were in the United States, Germany and Canada, and in all three of Motorola's business units. The company also said additional severance charges for the remaining job cuts, which had not yet taken place, will continue through the remainder of the year, but did not provide estimates for specific quarters.

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