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Wed, Feb 14, 2001 EST
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Motorola Plans to Cut 4,000 Jobs
Associated Press
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CHICAGO — Motorola Inc. disclosed plans Friday to cuts as many as 4,000 jobs, or about 3 percent of its work force, from its semiconductor operations by the end of the year — its third round of employee cuts in 10 weeks.

Motorola, the world's No. 3 maker of semiconductors and No. 2 in cellphones, has been suffering from a slowdown in the semiconductor market and falling profitability in its cellphone operations. While semiconductor sales rose 7 percent in the fourth quarter to $1.9 billion, totaling $7.9 billion for the year, orders slipped by 19 percent.

Last month it eliminated 2,500 jobs at its cellphone manufacturing facility in Harvard, Ill., and in December disclosed 2,870 layoffs in Iowa, Florida and Ireland as part of a moneysaving shift to more outsourcing of its cellphone production.

No specific locations for the job cuts were announced. The Schaumburg, Ill.-based company's semiconductor operations are based in Austin, Texas.

Motorola said the reductions, which will be made through a combination of attrition and layoffs, are aimed at helping to boost efficiency and improving profitability.

"While job reductions are extremely painful, they are a necessary part of our cost-reduction needs," said Fred Shlapak, president of the semiconductor products sector.

He said some of the job cuts will take place by the end of March while others will occur later in the year.

Shares of Motorola were trading down 61 cents to $19.21 in early afternoon trading on the New York Stock Exchange.

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