Motorola is to shed a further 7000 jobs, bringing the total losses this year to 39,000. President Robert Growney said in a conference call that selling off various businesses will account for 4000 staff and that 3000 will be cut through attrition and smaller reductions.
Growney indicated that there could be more. "Motorola will continue to take appropriate cost-reduction actions," he said.
The news came a day after the company reported a loss for the fourth consecutive quarter. Motorola lost $1.4bn, including restructuring and other charges. It filed a revenue decline of 22 per cent to $7.4bn and an operating loss of $153m, or seven cents a share, for the third quarter.
Faced by a weakened economy and slower industry growth in worldwide mobile phone sales, Motorola has already announced 32,000 job cuts this year to a workforce that stood at 147,000 last December. The increase in total cuts to 39,000 will trim the workforce to roughly 108,000: a reduction of about 27 per cent.
Chief executive Christopher Galvin said the company had been anticipating a global economic recovery starting in early 2002. "But, in the wake of the 11 September terrorist attacks, that is no longer necessarily the case," he said.
Paul Sagawa, an analyst with investment research and management firm Bernstein, pointed out in a research note that Motorola has a record of disappointments and broken promises.
"While progress in the handset division certainly raises hopes that the company is on its way, we believe that weakness in the other businesses are a strong reason to remain cautious," he said.
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