Motorola to cut an additional 4000 jobs
updated 11:15 pm EST, Wed January 14, 2009
More Motorola job cuts
Motorola has announced that it will cut an additional 4000 jobs in 2009, in an attempt to push cost savings to approximately $1.5 billion. The latest number will be added to the 3000 employee reduction that was reported in December. The shift will displace 3000 positions in the Mobile Devices division and 1000 positions from the corporate ranks and other business units. Other cost-cutting measures will include suspension of retirement plans, freezing many pension plans, eliminating pay increases and reducing salaries of several top executives.
A report earlier this week suggested that the company was preparing to reduce its mobile division by 50 percent, while trimming new phone introductions to as few as a dozen devices for the year. The company is also said to move exclusively to Android for its smartphones.
An analyst a year ago suggested that the company was considering closing its entire mobile division to reduce losses. Through the recent quarter, Motorola posted a loss of nearly $400 million that was mostly attributed to problems selling its high-end phones and the lack of a popular low-end device.
Motorola has acknowledged losses for the fourth quarter of 2008, although the number was presented as an estimated $0.07 to $0.08 per share. More information will be provided with the official results that will be disclosed early next month.
