Motorola outlines layoffs in SEC document

Schaumburg-based Motorola Inc. said late Tuesday that it approved cost reductions that would include 400 layoffs, according to a federal filing.

Motorola said the action was approved Dec. 23 to cut the 400 workers, which would result in a pretax charge, or write-off, of about $25 million during its fourth quarter, according to a U.S. Securities and Exchange Commission filing.

The cost reductions also would include exit-related activities, such as the termination of leases and contracts at affected facilities, which would result in a fourth-quarter charge of about $60 million.

Motorola said the $85 million charge, part of its October 30 announcement, would provide an estimated annual savings of $800 million in 2009.

It will be done through a number of actions, including facility rationalization and work force reductions, said Motorola spokeswoman Tama McWhinney.

She declined to disclose specific facilities impacted, but said most are outside of the United States.

"The 400 workers cited in the (filing) are part of the 3,000 announced on October 30. At that time, we announced that two-thirds would come from Mobile Devices and the other third from across corporate and the other businesses," said McWhinney. "We are not giving a specific breakdown for the 400 workers."

In October, Motorola said it would reduce its whipsawed work force by about 3,000 workers, including most from the foundering Mobile Devices business, which produces mobile phones and other handsets.

Altogether, Motorola aims to write off around $189 million during the fourth quarter as a result of the cost cuts and layoffs.