Motorola to Shed 4,000 Jobs in Second Round of Cuts [on top of 3,500 job cuts announced in January]

Source: Bloomberg

May 30 (Bloomberg) -- Motorola Inc., the world's second- biggest mobile-phone maker, will eliminate 4,000 jobs, the second round of firings this year as it works to return to a profit.

The move, along with lower general and administrative expenses, will help save an additional $600 million a year starting in 2008, Motorola said today in a statement. The company said it expects costs of $300 million, or 8 cents a share, in the remainder of this year tied to the latest cuts.

The reductions represent about 6 percent of Motorola's total workforce at the end of 2006, and come on top of 3,500 job cuts announced in January. Schaumburg, Illinois-based Motorola posted its first loss in almost three years in the first quarter as competitors Nokia Oyj and Samsung Electronics Co. won market share with new devices.

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Motorola said the January firings, which mainly affected middle managers, will be completed on schedule by June 30. The company, which had 66,000 workers at the end of 2006, plans to save $400 million a year with the original cuts.

Read more: http://www.bloomberg.com/apps/news?pid=20601087&sid=aDwP9fuWl._Q&refer=home

from Pacific rim countries manufacturing cheap cell phones with that $400 MLN windfall ?

Sorry to say it but people will by them.

The same tactics will not continue to work. That much seems obvious by now.

For years. It utterly blew the PowerPC platform and when it divested the chipmaking division, it has just continued to suck, more and more.

With the moves they are making now, I wouldn't be surprised to see them gone in 10 years. Like the AT&T of old, they just can't seem to hire too many incompetent executives.

the older models you can run them through the washer and just let them dry out..done that twice to my old flip phone...

generations of motorola gear. The last one was trash, little silver crap, antenna fell off, backlight broke. Switched to lg than palm.

people in Asia getting those jobs. The whole damned scenario sucks and I want to see the Democrats talk about this/ come up with solutions before there are no jobs left in this country.