Moto Cuts 4,000 More Jobs
Motorola announced even bigger workforce cuts this afternoon -- an additional 4,000 in layoffs for the beleaguered handset maker.
In a press release issued just before 5pm today the company stated there will be approximately 4,000 additional workforce reductions, with 3,000 within in the Mobile Devices business. The other 1,000 positions are associated with corporate functions and other business units.
Today's workforce reductions, plus other incremental cost-reduction initiatives, including those announced on December 17, 2008, are expected to result in additional annual cost savings of approximately $700 million in 2009, according to the release.
Total cost savings from recent actions now expected to be approximately $1.5 billion in 2009.
The savings from these actions, together with the $800 million of savings from other actions announced during the fourth quarter of 2008 are expected to result in aggregate cost savings of $1.5 billion for the Company in 2009.
"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, in the released statement. He said the Mobile Devices business expects to recognize annual cost savings of approximately $1.2 billion in 2009.
Motorola's release states that during the fourth quarter its Mobile Devices unit shipped approximately 19 million handsets -- and that sales were hurt by continued weakness in end consumer demand and customer inventory reductions.
Motorola will hold its next financial earnings call on February 3.