Motorola confirms layoff of 1,900 employees

Motorola Wednesday confirmed the layoff of 1900 employees in 29 facilities across 20 countries to cut supply-chain costs.

A Motorola Inc. spokeswoman confirmed Wednesday that the mobile handset provider has laid off 1,900 employees since July as part of a move to cut costs in Motorola's supply chain.

The layoffs were made public after the Schaumburg, Illinois-based company filed a Form 8-K to the U.S. Securities and Exchange Commission late Tuesday to report US$70 million in pre-tax severance charges in the third quarter of 2005. In the form, the company said the severance benefits, which began in the third quarter, will continue through the second quarter of 2006. The 1,900 layoffs took place in 29 facilities across 20 countries.

Jennifer Weyrauch, director of corporate communications for Motorola, said the company warned it would be making the headcount reductions at its annual financial analyst meeting earlier this year.

Motorola plans to continue consolidating its supply chain operations to cut costs, but it is not planning further layoffs at this time, she said. It continues to hire in other strategic areas of the business, she added.

Motorola plans to announce its third quarter financial results on Oct. 18.

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