Motorola Solutions cuts about 175 jobs

Schaumburg-based Motorola Solutions said Friday it has cut around 175 jobs, mostly from its WiMax technology group.

The cuts were primarily in Arlington Heights, Fort Worth, Texas, and Tempe, Ariz. Many involved the WiMax technology group, which is part of the Networks business based in Arlington Heights.

WiMax, an acronym for Worldwide Interoperability for Microwave Access, delivers last-mile wireless broadband to a home or business as an alternative to cable or a DSL phone line, according to the WiMax Forum.

The WiMax market has become smaller than originally anticipated and the company is realigning its work force to conserve cash, said Motorola Solutions spokeswoman Tama McWhinney.

“But this doesn't mean we're leaving WiMax,” McWhinney said.

Affected employees were told in recent weeks about the cuts and their last day was Friday. They are receiving severance and outsource placement, she said.

Last year, Nokia Siemens Networks agreed to buy the Networks business, but the completion of that deal is still awaiting regulatory approval from the Chinese government. Companies with global operations are required to follow regulations in countries where they operate in order to finalize acquisitions.

“The reduction does not affect the acquisition of Motorola Networks by Nokia Siemens Networks,” said McWhinney.

Last week, Motorola Solutions CEO Greg Brown said he was committed to staying in Schaumburg and even considered expansion there.

Motorola Solutions and Motorola Mobility separated Jan. 4 from the former Motorola Inc., creating two publicly traded companies. Solutions focuses on emergency and first-responder equipment and network services, while Mobility targets consumer mobile phones, devices and home equipment.

Brown said he has a global work force of about 23,000, including 4,500 here.

In addition, Solutions still has about 7,500 workers with its former Networks staff, including 1,800 in Arlington Heights, that is preparing to transfer over to Nokia Siemens after the acquisition is completed.

Motorola Solutions last Thursday posted net income rose to $293 million, or 86 cents per share, for the fourth quarter, compared to $142 million, or 43 cents per share, for the same period a year ago. Revenue was $5.66 billion, compared to $4.79 billion during the same period a year ago.