Motorola to cut 4,000 staff

Motorola's Mobile Devices business expects to see cost savings of approximately $1.2bn in 2009

Motorola is to axe 4,000 staff in an effort to trim costs, and confirmed that the most severe reductions will affect its Mobile Devices division.

"The actions we are taking today in our Mobile Devices business will allow us to further reduce our cost structure, and position us for improved financial performance in 2009," said Motorola co-chief executive Sanjay Jha.

Motorola cut 3,000 staff at the end of 2008. The extra cuts should save the company $700m (£478.4m) during 2009, according to the firm.

"Together with these actions, and the announcements made in the fourth quarter, the Mobile Devices business expects to recognise annual cost savings of approximately $1.2bn (£820m) in 2009," Jha added.

The redundancies are likely to start immediately, and will include around 3,000 positions associated with the Mobile Devices business and 1,000 positions associated with corporate functions and other business units, Motorola said.