With a view to focusing on its wireless business, Motorola Inc. said it plans to slash 1,000 jobs, or 1 percent of its staff, and absorb charges of about $50 million.
Most of the job losses will affect the vendor’s government, industrial, broadband and electronics systems units. The job losses also arise from the spinoff of chip subsidiary Freescale Semiconductor Inc., which will still generate more costs in the third quarter, according to Motorola. Also in the third quarter, the telecom player expects to incur $80 million in costs related to early debt repayments.
The company, which said the decision is aimed at realigning it workforce, indicated it will pay the severance benefits in the third quarter and through to the first quarter of 2005.
