Motorola is to cut 4,000 jobs as it tries to pare losses and return to profitability, the world's second largest maker of mobile phones said Wednesday.
The reductions represent about 6% of Motorola's total workforce at the end of 2006 and come on top of 3,500 job cuts announced in January. The move, along with lower general and administrative expenses, will help save an additional $600 million a year but will incur costs of 300 million in the remainder of this year. Motorola's profits have lagged since last year, over the company's failure to come up with a successful line of products to replace its best-selling Razr phone, which is more than two years old.
Motorola currently commands some 18% of the worldwide market for mobile phones, compared to 36.2% for industry leader Nokia, according to figures from research firm Strategy Analytics. (monstersandcritics.com)