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SMOTOROLA HAS BEGUN NEW ROUND OF LAYOFFS IN CHICAGO

Illinois Policy Institute
 
Motorola is expected to cut hundreds of workers from its Chicago operations.

Motorola Mobility began laying off workers at its Chicago headquarters Sept. 26, according to Crain’s Chicago Business. Neither Motorola nor its parent company, Lenovo, has specified the exact number of layoffs globally, but company estimates put the number at less than 2 percent of Lenovo’s 55,000 worldwide employees. The cuts at Motorola’s Chicago headquarters are expected to number in the hundreds, but to be fewer than the office’s 500 layoffs in August 2015.

Lenovo is cutting staff as part of its integration with Motorola’s smartphone business. Lenovo acquired Motorola in 2014.

These layoffs come on the heels of the 8,200 jobs Illinois lost in August. While manufacturing showed an especially severe decline that month with 4,400 jobs lost, most other sectors in Illinois performed poorly as well. And 22,000 people dropped out of the state’s workforce in August, bringing Illinois’ total labor force shrinkage to 100,000 since May.

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Many of those who have lost faith in Illinois’ labor market likely have joined the masses of out-migrating Illinoisans over the summer. Illinois loses more adults in their prime working years than residents of any other age group, according to data from the Bureau of Labor Statistics. Illinois has the highest out-migration rate in the region – its rate of out-migration as a percentage of population is many times the rates of nearby states. The exodus of residents means foregone tax revenue for Illinois, as well as lost talent and skills – not to mention neighbors, friends and family members.

Illinois must reverse its high-tax, anti-growth policies if it is to keep and attract the jobs its residents need. If it doesn’t, Motorola’s layoffs will be followed by more dismal job cuts and lost opportunities.

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