Motorola announced further cost reduction plans and preliminary Q...
Motorola announced further cost reduction plans and preliminary Q4 results Thursday. Beginning immediately, the manufacturer will cut about 4,000 jobs in 2009, including some 3,000 positions in its Mobile Devices business and some 1,000 associated with corporate functions and…
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other business units, it said. The savings from job cuts, together with the $800 million of savings from other actions announced earlier are expected to result in aggregate cost savings of $1.5 billion in 2009, it said. The Mobile Devices business expects to recognize annual cost savings of about $1.2 billion in 2009, co-CEO Sanjay Jha said. The vendor is on track in developing new smartphones for 2009, he said. Motorola shipped about 19 million units in Q4, down from 25.4 million in Q3 and 40.9 million in the same period of 2007. Sales were hurt by weak consumer demand and customer inventory reductions, it said. But Enterprise Mobility Solutions and Home and Networks Mobility businesses remained strong. The company ended the year with some $7.4 billion in cash. Total sales for Q4 are expected to be in the range of $7-7.2 billion. Deutsche Bank maintained its Buy rating, saying it expects the company to turn around the handset business in coming quarters.