Motorola targets USD 1.5 billion in cost savings

January 16, 2009 at 18:08 Leave a comment

Motorola has announced plans to cut another 4,000 jobs, mainly at its mobile phone business, where sales continue to drop. The company reported preliminary fourth-quarter results showing phone shipments of 19 million units, down from 25.4 million in Q3 due to weak consumer demand and customer inventory reductions. Around 3,000 jobs will go at the Mobile Devices division, with the remainder at corporate functions and other business units. The staff reduction comes on top of the 3,000 job cuts announced late last year. The current cuts, additional cost-reduction efforts and the measures announced in Q4 are expected to lead to annual cost savings of USD 1.5 billion in 2009, of which USD 1.2 billion at Mobile Devices. Motorola said its Enterprise Mobility Solutions and Home and Networks Mobility businesses continued to perform well in Q4, in a “challenging environment”. Total sales for Q4 are estimated at USD 7.0-7.2 billion, while the net loss will reach USD 0.07-0.08 per share, including 6 cents in charges for restructuring and writing down the Clearwire stake and start-up investments. The company noted that it is still assessing impairment tests for the quarter, which could result in a bigger loss, and the figure dos not include charges for the above restructuring measures. Motorola finished the year with cash of USD 7.4 billion. Full quarterly results will be released on 3 February.

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Entry filed under: Job Cuts, Mobile, Motorola, Telecom, Wireless. Tags: , , , , .

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