Motorola details layoff expenses

Schaumburg-based Motorola Inc. has spent around $343 million for severance and other costs related to eliminating 5,100 jobs so far this year, the company said in a filing Wednesday with the U.S. Securities and Exchange Commission.

The communications company is still targeting another 2,400 jobs as part of its previously announced plan to eliminate a total of 7,500 positions and save $1 billion annually.

"This action is under way and impacts all regions, businesses and functions," said Motorola spokeswoman Jennifer Erickson. "At the same time, it's important to note that we are continuing to hire top talent in critical areas."

Motorola has been restructuring to return to profitability after sales fell in Asia and Europe amid stiffer competition and a loss of market share worldwide.

The federal filing said about 4,100 positions were eliminated from January through June at a cost of $221 million.

Another 1,000 workers were targeted from July through September in all three of the company's business segments. The majority of the employees affected in the third quarter were in Germany. These severance packages, along with other expenses, amounted to $122 million in charges, the filing said.

In June, Motorola had closed its Urbana-Champaign Design Center at the University of Illinois Research Park and cut 183 jobs. It then closed a similar center in Adelaide, Australia, and laid off 66 workers. In addition, it pulled out of Montreal and eliminating 225 jobs at that software development center.