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Motorola Freezes Salaries, Cuts Benefits

It’s no secret that Motorola has financial problems. Standard & Poor’s has given it a junk credit rating, and it was having financial troubles prior to the credit crunch biting hard.

But it’s taking steps to ride out the recession. Co-chieif executives Greg Brown and Sanjay Jha have both agreed to forgo their 2008 cash bonuses and will take a 25% salary cut, according to CNET.

Beginning in 2009, the company will suspend its matching 401k contributions for employees, and will freeze its pension plan from the start of March. It will fund its pension obligations to retirees, however.

In a statement Brown and Jha said:

"The sustained downturn in the global economy requires that we take these difficult but necessary steps. 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."