Page last updated at 06:52 GMT, Thursday, 15 January 2009

Motorola to cut 4,000 more jobs

Motorola phone
Motorola is in fourth place in the global handset market

Mobile phone giant Motorola has said it is to cut 4,000 jobs, roughly 6% of its workforce, in the face of the economic downturn and waning demand.

It also warned it would make a fourth-quarter loss as sales of mobile phones were weaker than expected.

The firm had cut 6,700 jobs in 2008. Its latest cuts includes about 3,000 posts in the mobile-devices business and 1,000 jobs from other units.

Motorola said the move brought planned cost savings in 2009 to $1.5bn (1bn).

That figure includes $700m of new savings on top of a previously announced plan to cut $800m in expenses.

'Faring worse'

Motorola said it sold about 19 million handsets in the fourth quarter of 2008, down from 40.9 million in the fourth quarter of 2007. It put the poor handset sales down to weakness in consumer demand.

The firm had dropped to fourth place in the global handset market in the third quarter with sales of 25.4 million.

Avian Securities analyst Matthew Thornton said: "I'm sure they're faring a bit worse than some of the other tier-one manufacturers.

"It's not going to get any easier in the next couple of quarters."

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