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Motorola Forks Out $101 Million in Employee Severance Pay

5:55 am on July 9, 2007 | Category: Business, Corporate

The world’s second largest cell phone maker, Motorola Inc., has reported a one-time cost of approximately $101 million, in relation to a recent round of employee layoffs.

The Schaumburg, Illinois-based company cut 2,100 jobs in the second quarter, in an ongoing effort to reduce long-term expenses amid declining profit margins. Additional layoffs are expected later in the year.

Motorola expects to have paid out around $300 million in severance pay and other layoff-related expenses by the end of 2007, and is expected to cut a total of 7,500 jobs, mostly in the United States, Canada, and Germany.

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