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Motorola to cut 4,000 more jobs in 2009
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Motorola to cut 4,000 more jobs in 2009
January 16, 2009 Bangalore:Motorola, the Mobile phone maker that is struggling hard to wriggle out of the ever-increasing losses, said on Wednesday that it would cut another 4,000 jobs in 2009. In addition the company predicted a large drop in fourth quarter sales in 2008.
The workforce reductions announced are expected to begin immediately and are incremental to the 3,000 workforce reduction actions previously announced during the fourth quarter of 2008.
Motorola said its handset sales fell to 19 million in the fourth quarter of 2008, less than half the amount from the fourth quarter a year ago, when the company sold close to 41 million mobile phones.
Motorola expects to the move would save about $700 million a year starting in 2009, and total $1.5 billion in annual savings when combined with the previous cut. The firm had cut 6,700 jobs in 2008 and its latest includes 3000 in mobile device business and 1, 000 jobs in other units.
"The actions we are taking today in our Mobile Devices business will allow us to further reduce our cost structure and positions us for improved financial performance in 2009," said Sanjay Jha, co-chief executive officer of Motorola.
He added, "Together with these actions and the announcements made in the fourth quarter, the Mobile Devices business expects to recognize annual cost savings of approximately $1.2 billion in 2009."
Last month Motorola said it would freeze its US pension plans. The company said it would announce its fourth quarter results on February 3.
Source:
http://ciol.com/News/News-Reports/Motorola-to-cut-4,000-more-jobs-in-2009/161091
The workforce reductions announced are expected to begin immediately and are incremental to the 3,000 workforce reduction actions previously announced during the fourth quarter of 2008.
Motorola said its handset sales fell to 19 million in the fourth quarter of 2008, less than half the amount from the fourth quarter a year ago, when the company sold close to 41 million mobile phones.
Motorola expects to the move would save about $700 million a year starting in 2009, and total $1.5 billion in annual savings when combined with the previous cut. The firm had cut 6,700 jobs in 2008 and its latest includes 3000 in mobile device business and 1, 000 jobs in other units.
"The actions we are taking today in our Mobile Devices business will allow us to further reduce our cost structure and positions us for improved financial performance in 2009," said Sanjay Jha, co-chief executive officer of Motorola.
He added, "Together with these actions and the announcements made in the fourth quarter, the Mobile Devices business expects to recognize annual cost savings of approximately $1.2 billion in 2009."
Last month Motorola said it would freeze its US pension plans. The company said it would announce its fourth quarter results on February 3.
Source:
http://ciol.com/News/News-Reports/Motorola-to-cut-4,000-more-jobs-in-2009/161091
