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Motorola shaves 4,000 chip jobs

Axe swings again

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Motorola today revealed plans to cut up to 4,000 jobs at its semiconductor business by the end of the year.

The reduction, accounting for around three per cent of the mobile phone and chip company's workforce, will be made through a combination of attrition and layoffs. Motorola did not say which areas of the country would be affected - its chip unit is based in Texas.

"Each of our business units and support organizations has reviewed its circumstances and is making the necessary adjustments to help the Sector meet its goals," said Fred Shlapak, Motorola semiconductor products sector president. "While job reductions are extremely painful, they are a necessary part of our cost-reduction needs."

Last month the company slashed 2,500 jobs at its phone plant in Harvard, Illinois - part of a general belt-tightening programme adopted after it announced it expected profit to dip over the first two quarters of 2001.

Shlapek said the company would continue to invest in R&D "to provide embedded solutions for the person, work team, home and auto". ®

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