Motorola has slashed 7000 more jobs in its handset manufacture unit, citing a deterioration in the mobile phone market. The losses are on top of the 16,000 jobs it has either cut or outsourced in the past six months.
The second largest maker of mobile handsets said the reductions would affect all aspects of the business across all geographies, and would be completed by the end of the second quarter.
Mike Zafirovski, president of Motorola's Personal Communications unit, said: "Unfortunately, this was a necessary next step for us to achieve renewal and stay competitive in today's business environment, particularly given the current slowdown in the economy."
However, according to a new study released by Strategy Analytics, the global cellular market will double in size to 1.7 billion users by the end of 2006. GSM-based systems will continue to dominate the worldwide cellular landscape over the next five years, accounting for 55 per cent of the market in 2006.
Dave Kerr, vice president of Strategy Analytics' global wireless practice, said: "Although we are in the midst of a media blitz of reports suggesting a slowing economy, Strategy Analytics believes the US cellular industry will continue to post strong growth in 2001."
In January, Motorola eliminated 2500 jobs at its mobile phone manufacturing facility in Illinois, a month after making 2870 staff redundant in Iowa, Florida and Ireland. The company also makes handsets at plants in Mexico, Europe and Asia.
Last year, the company was the second biggest manufacturer of mobile phones shipping 60 million units and gaining a 14.6 per cent market share.
In first place was Nokia which grabbed a 30.6 per cent share by selling 126.4 million phones worldwide, according to figures from Dataquest.
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