The company expects to incur a severance-related charge of no greater than $275 million, which it expects will be largely recognized in the third quarter, with the rest recognized by the end of 2012. It also expects to incur other restructuring charges related to the actions, most of which will be recognized in the third quarter. The company said it could not currently predict the amount of these other charges which it said could be significant. Motorola had 20,293 employees as of June 30.
Motorola plans to cut the number of devices the company makes from the 27 it introduced last year to just a few, Dennis Woodside, Motorola's new chief executive, told The New York Times. He plans to make products that are cool again, and include for example sensors that recognize who is in a room from their voices, cameras that take crisper photos, and batteries that last for days, according to the newspaper.