SCHAUMBURG, Ill. – Motorola, Inc., a supplier of wireless and broadband communications products, said Wednesday that it will layoff an additional 4,000 employees as it continues with its cost-reduction initiatives that were announced during the first quarter of 2007.
The company’s previously announced workforce reduction of 3,500 people will be completed as scheduled by June 30, 2007.
Motorola said it is on target to achieve the $400 million in annualized cost savings that it announced in January.
With the new layoffs, the company expects to achieve another $600 million in annualized cost savings in 2008, in combination with a prioritization of investments, continued discretionary-spending controls, general and administrative expenses and site rationalization.
Motorola also plans to record additional restructuring charges of approximately $300 million, or approximately $0.08 per share. The charges are expected to be incurred over the remainder of 2007 and will consist primarily of severance and related expenses resulting from the workforce reductions.
Motorola had sales of $42.9 billion in 2006.