Motorola announces 4,000 job cuts

31 May 2007

US mobile phone maker Motorola is cutting 4,000 jobs as part of a cost-cutting move designed to return the company to profit. The announcement, which will be implemented before the end of this year, comes on top of the earlier 3,500 lay-offs announced in a bid to generate savings of USD400 million per annum. In total, Motorola is paring back its 66,000-strong global workforce by 11%, marking CEO Ed Zander’s determination to get the US handset maker back on course. The company posted a first-quarter loss after its plans to increase market share backfired and profit margins slumped. According to a report in the Financial Times, Motorola envisages the fresh job cuts announcement will incur restructuring charges of around USD300 million over the remainder of 2007.

United States, Motorola