Motorola Inc. plans to fire about 20 percent of its top 600 executives this
quarter as part of a layoff plan that has savaged its ranks.
Although the company's work force has plunged 60 percent to 48,000 over the
past two years, it has roughly the same number of executives ranked vice
president and higher.
The executive firings are part of 9,400 job cuts announced last month by the
A spokeswoman said the management cuts will hit every part of the company,
including the broadband-equipment unit, but the specific executives to be let go
had not yet been chosen.
Separately, a federal judge ordered the cellular- and cable-equipment maker
to pay up on a $300 million guaranty tied to failed satellite phone venture
U.S. District Judge Alvin Hellerstein in Manhattan ordered Motorola to pay up
on the guaranty, which was offered to induce a bank group led by J.P. Morgan
Chase & Co. to lend Irridium $800 million.
Irridium filed for Chapter 11 in August 1999 after burning through $5 billion
to build a worldwide wireless-phone system that managed to sign up just 20,000