Motorola Lays Off 1,600 More Employees

Motorola Inc. said late Friday it laid off 1,600 more employees in the fourth quarter of 2007 and that the costs will create capex charges in 2008.

The telecom equipment company released the information in a filing with the Securities and Exchange Commission.

Motorola in the first nine months of 2007 took charges of $311 million when it got rid of 5,100 workers. The corporation next will incur net pre-tax charges of $90 million for severance costs and $9 million to get out of facilities leases. That last $9 million, though, will be partially offset by $9 million that Motorola has on the books.

All three of Motorola’s business units are affected.

Motorola has had a tough year. The company started reducing its headcount early last year as it slipped toward third place in terms of mobile handset market share. By the end of 2007, Nokia had taken the lead, Samsung nabbed second place and Apple Inc.’s iPhone – not the Motorola RAZR – became the new must-have.

Also, last November, Ed Zander resigned as CEO, after months of pressure to do so. As of Jan. 1, Greg Brown, formerly president and COO, runs Motorola.

Motorola Inc. www.motorola.com

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