Motorola Inc. said this week that it would cut another 4,000 jobs in 2009, This in addition to 3,000 planned cuts it disclosed in October of last year.
The Schaumburg, Ill.-based company said about three-quarters of these cuts would come from its struggling mobile phone unit. The move is expected save about $700 million US a year starting in 2009, and total $1.5 billion in annual savings when combined with the previous cut, the company said in a statement.
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.
It said it expects to report a loss per share in the range of seven to eight cents on revenue of $7 billion US to $7.2 billion US.
Motorola had already dropped to fourth place in the global handset market in the third quarter, behind Nokia Corp., Samsung Electronics Co. and Sony Ericsson.
Motorola had discussed spinning off its mobile phone unit in the third quarter of 2009, but delayed those plans following its third quarter results. The company also decided then to delay the launch of a new mobile phone based on Google Inc.'s Android software until late in 2009.
The company is expected to announce its fourth quarter results on Feb. 3.
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