Nov. 14, 2002 – Austin, TX – Thousands of workers at Motorola Inc.’s Austin-based semiconductor business were told they must take 10 days off by the end of the year in a cost-cutting measure.

The move could affect more than 5,000 engineering, sales, marketing, and other non-manufacturing employees in Austin. The mandatory days-off plan does not affect the roughly 3,000 manufacturing workers in Austin.

Executives running the chip business are under the gun to make the business profitable in the fourth quarter, reported the Knight Ridder Tribune.

“We are going to do whatever it takes to continue that track of profitability,” said spokesman Ken Phillips.

Motorola’s chip business lost $2.14 billion on sales of $4.94 billion in 2001 and lost another $1.5 billion on sales of $2.3 billion in 1H02. This year’s loss included a $1.1 billion reduction in the value of the company’s chip factories.

Non-manufacturing workers will be required to take five days off by Dec. 20 and another five days off between Christmas and New Year’s Day.

Employees can receive vacation pay for the time off, if they have any available, or they can borrow against future vacation, Phillips said.

The days off requirement comes in addition to the company’s five paid holidays that fall between Thanksgiving and New Year’s Day.