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Motorola To Cut Up to 4,000 Jobs

February 9, 2001

CHICAGO (AP) _ Motorola Inc. disclosed plans Friday to cut 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.

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

The cell-phone and semiconductor giant said the moves continue its cost-reduction measures and are aimed at helping to boost efficiency and improving profitability.

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.

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

The company said it would reduce its semiconductor work force through a combination of attrition and layoffs.

``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 77 cents to $19.05 in early afternoon trading on the New York Stock Exchange.

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On the Net: http://www.motorola.com

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