Motorola Sales Plummet; 4,000 Jobs Lost

Motorola has confirmed that the company will eliminate an additional 4,000 jobs (all but 1,000 from its mobile-devices unit) after cell phone sales plummeted more than 50 percent in its fourth quarter.

From the Associated Press:

Mobile handset maker Motorola Inc. said Wednesday it will cut 4,000 more jobs in 2009, in addition to 3,000 it announced in October.

The company said the move will save about $700 million a year starting in 2009, and total $1.5 billion in annual savings when combined with the previous cut.

Most of the new layoffs will hit the mobile devices business, while about 1,000 jobs are tied to corporate functions and other business units.

The move is the latest in cost-cutting measures by Motorola, which has been struggling to revive its business in recent years. When the cuts are complete, around 12,000 workers will have left the company since December 2007 when there were 66,000 employees, an 18 percent reduction. Last month, it announced it was freezing its pension plans and reducing executive pay.

The Schaumburg, Ill.-based company also said Wednesday it expects revenue for the fourth quarter to be between $7 billion and $7.2 billion, as it saw continued weakness in consumer demand and customer inventory reductions.

Advertisements
Explore posts in the same categories: Uncategorized

Tags: , , , , , , , , ,

You can comment below, or link to this permanent URL from your own site.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

w

Connecting to %s


%d bloggers like this: