Moto's Unique Employee Retention Strategy
Some people get addicted to email, to music downloads, to instant messaging.
I'm addicted to SEC filing alerts.
It's a new malady and I completely blame Motorola.
Why? Well in the quest to track, report and unearth what's going on with the company I signed up for their SEC alert service and now, no matter what I'm in the middle of, I'm compelled to stop and click through to check out the latest filing document.
It's pathetic I know. But it reaps rewards now and then. Yes, sometimes I have no clue what a stock move made by a board officer means on face value.
But I sure know what this report statement means:
Item 2.05 Costs Associated with Exit or Disposal Activities
**During the first quarter of 2008, Motorola, Inc. (the ���Company���) has taken specific actions relating to workforce reductions that will result in severance costs relating to approximately 2,600 employees. The result will be a net pre-tax charge in the first quarter of 2008 totaling approximately $104 million, comprised of $113 million in charges for severance costs, partially offset by $9 million of reversals for accruals from prior periods that are no longer needed. All of the above estimated charges are expected to result in future cash expenditures during 2008. All three of the Company���s business segments, as well as various corporate functions, are impacted by these plans.**
From the way I read it, Moto let go 2,600 people in the first quarter of this year.
Now Moto is a huge company, I know that. But still. What I'm trying to find out is whether this is part of the planned stated layoffs last spring of 4,000 or a whole new round.
Ironic that CEO Greg Brown told investment bankers during the recent call about the company split-off that employee retention was a big challenge.
It is, indeed, hard to keep good people when you're laying off left and right.