Beleaguered handset maker suspends retirement fund contributions, reduces salaries.
Motorola has moved to extend its $800 million cost-cutting programme and will permanently stop matching contributions to its US employee pension plan from March 1st.Reuters reports that employees have also been told that they will not be receiving pay rises in 2009, with co-CEOs Greg Brown and Sanjay Jha taking a voluntary 25 per cent pay cut next year.
The company hasn't said how much the new measures will produce in cost savings, but stressed that it would still provide funding to meet its obligations for current and future retirees.
Advertisement
