Motorola to Cut 4,000 Jobs in 2009
January 15th, 2009 at 1:23 pm - by admin
Illinois-based Fortune-100 wireless and communicative technology producer, Motorola Inc., announced Thursday that an additional 4,000 jobs would be cut in 2009; in addition to the previous estimate of 3,000.
The total savings of this nearly-10 per cent reduction in employment is expected by analysts to clock in at over $1.5 billion U.S.
“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-CEO at Motorola, in the press release. “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. Additionally, we are making good progress in developing important new smartphones for 2009 and are pleased with the positive response from our customers to these new devices.”
The release also announced that Motorola sold a total of 19 million handhelds last quarter, a huge, mostly expected fall from the 41 million sold in the Christmas quarter of 2007. Saying that sales were “adversely impacted by continued weakness in end consumer demand and customer inventory reductions.”
Total sales for the company in the fourth quarter of 2008 are expected to be about $7.0 billion.
