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Motorola accelerates layoffs

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Motorola accelerates layoffs

Schaumburg (IL) – Motorola cut more employees from its payroll during the fourth quarter than the company had previously announced.  Instead of laying off 1500 people, Motorola dropped 1900 employees, according to a SEC filing.

In an effort to save about $800 million in 2009, Motorola previously announced that it would be reducing its workforce by 3000 people, half of which were supposed to get their pink slips in the fourth quarter of 2008. Now it seems that 1900 people were cut during that time frame in what seems to be an accelerated pace to cut costs.

The mobile devices unit, which is expected to be spun off in 2009, was the primary target for layoffs in Q4; however, other business units such as the video division were hit as well.
 
It seems that Motorola rivals are eyeing some of those employees as potential additions to their workforce – and it appears that Motorola isn’t entirely happy with this scenario. Blackberry maker Research in Motion (RIM) recently filed suit against Motorola for improperly clocking current or recently laid off workers to sign with RIM. Motorola claims that it has an agreement with RIM that the two companies would not go after each other’s employees, while RIM wants the agreement to be invalidated.

Motorola’s motivation for keeping the agreement in place is understandable, but we are sure that workers who just lost their job would be happy to get a new job in these difficult times.  

Motorola did not say whether it will cut more than the previously announced 3000 people from its workforce.