Motorola to Cut 4,000 Jobs in its Semiconductor Products Sector

February 11, 2001 by Jeff Shepard

The semiconductor products sector of Motorola (Schaumburg, IL) announced that, in a continuation of cost-reduction measures that began in the fourth quarter, further steps to boost efficiency and improve profitability are being taken. These measures will include a substantial reduction in capital spending and operating budgets, further business and manufacturing consolidations, and the elimination of up to 4,000 jobs during the year. These workforce reductions will be achieved by ending the assignments of contract and temporary employees, attrition, and both voluntary and involuntary severance programs.

These latest measures follow similar actions taken in the past few months. In January, the company eliminated 2,500 jobs at its cellular phone manufacturing facility in Harvard, Illinois, one of its last two in the US. In December, it disclosed 2,870 layoffs in Iowa, Florida and Ireland as part of a money-saving shift to more outsourcing. The new reductions amount to about 12 percent of jobs in Motorola's semiconductor products division, which operates plants in Austin, Texas; Phoenix, Arizona; and five countries in Europe and Asia.

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

Shlapak noted that some of the cost-reduction measures will be completed in the first quarter, while others will conclude later in the year, depending upon legal or regulatory requirements in various countries. “At the same time," Shlapak added, “we are continuing to invest in R&D and build on our strengths to provide embedded solutions for the person, work team, home and auto."