Motorola cutting 4,000 semiconductor jobs

Austin, Texas–In a continuation of cost-reduction measures Motorola began in the fourth quarter, the company’s Semiconductor Products Sector today announced further steps to boost efficiency and improve profitability.

These measures will include a substantial reduction in capital spending and operating budgets, further business and manufacturing consolidations, and the elimination of up to 4,000 jobs during the year. These workforce reductions will be achieved by ending the assignments of contract and temporary employees, attrition, and both voluntary and involuntary severance programs.

“Each of our business units and support organizations has reviewed its circumstances and is making the necessary adjustments to help the Sector meet its goals,” says Fred Shlapak, president of the Semiconductor Products Sector. “While job reductions are extremely painful, they are a necessary part of our cost-reduction needs.”

Shlapak noted that some of the cost-reduction measures will be completed in the first quarter, while others will conclude later in the year, depending upon legal or regulatory requirements in various countries.


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