Reuters Business Report
Motorola to Cut 7,000 Jobs
By Ben Klayman and Yukari Iwatani
CHICAGO (Reuters) - Motorola Inc. (NYSE:MOT - News) said on Thursday it will cut 7,000 more jobs and take charges totaling about $3.5 billion, essentially ending its downsizing, as it contends with sharply reduced spending in the depressed technology and telecommunications sectors.
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Since August 2000, the chipmaker and world's second largest mobile phone maker has slashed its work force by more than one-third from its peak level of 150,000.
"What we're doing here is taking the company back to about its 1995 size, before the era of the excesses of the dot-com and telecom booms," Motorola Chairman and Chief Executive Christopher Galvin told analysts on a conference call.
Motorola's stock rose 9 cents to $14.13 early Thursday afternoon on the New York Stock Exchange. It has declined 6 percent since the first of the year, compared with a 50 percent drop in the industry proxy Standard & Poor's telecommunications equipment index (^GSPCOMM - News) in the same period.
The company said the charges, to be taken mostly in the second quarter, will reduce this year's net income by $1.10 a share, but it still sees a profit before special charges of at least 4 cents a share. Motorola posted a net loss of $1.78 a share last year. It said 2002 sales could decline by as much as 10 percent from last year.
Motorola to Cut 7,000 Jobs
By Ben Klayman and Yukari Iwatani
CHICAGO (Reuters) - Motorola Inc. (NYSE:MOT - News) said on Thursday it will cut 7,000 more jobs and take charges totaling about $3.5 billion, essentially ending its downsizing, as it contends with sharply reduced spending in the depressed technology and telecommunications sectors.
ADVERTISEMENT
Since August 2000, the chipmaker and world's second largest mobile phone maker has slashed its work force by more than one-third from its peak level of 150,000.
"What we're doing here is taking the company back to about its 1995 size, before the era of the excesses of the dot-com and telecom booms," Motorola Chairman and Chief Executive Christopher Galvin told analysts on a conference call.
Motorola's stock rose 9 cents to $14.13 early Thursday afternoon on the New York Stock Exchange. It has declined 6 percent since the first of the year, compared with a 50 percent drop in the industry proxy Standard & Poor's telecommunications equipment index (^GSPCOMM - News) in the same period.
The company said the charges, to be taken mostly in the second quarter, will reduce this year's net income by $1.10 a share, but it still sees a profit before special charges of at least 4 cents a share. Motorola posted a net loss of $1.78 a share last year. It said 2002 sales could decline by as much as 10 percent from last year.
