Still reeling from the economic crisis, Motorola has announced that employees at many of its sites worldwide will not be receiving a pay-rise in 2009.
The company has also announced an intention to permanently freeze pension plans for its US employees. Motorola has pledged to meet its pension obligations for present and future employees, but has eliminated future benefit accruals.
From January 1, Motorola also intends to temporarily cease the practice of matching contributions to US employees' 401(k) retirement plans.
As part of the cost-cutting efforts, co-CEOs Greg Brown and Sanjay Jha will voluntarily take a 25% pay-cut in 2009. In addition, Brown will forgo any cash bonus for 2008, and Jha will take a bonus reduced by an amount equal to Brown's forfeited bonus.
"The sustained downturn in the global economy requires that we take these difficult but necessary steps," Brown said.
"While serving our customers remains a top priority, we are equally focused on our cost structure, and we will continue to implement appropriate measures to conserve cash and reduce expenses."
Motorola hopes these measures will generate additional savings on top of the $800 million the company hopes to shave from its costs in 2009.