Sign up for our newsletter
Technology / Networks

Motorola slashes 4,000 jobs

Motorola has announced plans to cut approximately 4,000 positions in 2009 in an effort to cut costs and counter the weaker demand for mobile phones as a result of the global economic downturn.

The workforce reduction includes 3,000 jobs at it mobile devices division and 1,000 positions associated with corporate functions and other business units.

This follows the 3,000 job cuts announced in the fourth quarter 2008. The company said this workforce reduction and other cost-reduction initiatives announced in December 2008, including changes to employee compensation and benefit programs as well as changes to executive compensation, are expected to generate aggregate cost savings of $1.5 billion in 2009.

The company also announced preliminary financial results for the fourth quarter 2008. It expects revenue to be in the range of $7 billion to $7.2 billion and a net loss per share from continuing operations in the range of $0.07 to $0.08.

White papers from our partners

Sanjay Jha, co-chief executive at Motorola, said: The actions we are taking today in our Mobile Devices business will allow us to further reduce our cost structure and position us for improved financial performance in 2009. The Mobile Devices business expects to recognize annual cost savings of approximately $1.2 billion in 2009. Additionally, we are making good progress in developing important new smartphones for 2009.

In October 2008, the company reported a net loss of $397m for the third quarter, compared to net profit of $60m in the year-ago quarter, on revenue down 15% at $7.5 billion.


This article is from the CBROnline archive: some formatting and images may not be present.

CBR Staff Writer

CBR Online legacy content.