Tuesday, January 13, 2009

Motorola to Cut 4,000 More Jobs, primarily in the Mobile Devices

Motorola will further reduce its workforce in 2009 by approximately 4,000 positions, including approximately 3,000 positions associated with its Mobile Devices business and approximately 1,000 positions associated with corporate functions and other business units. These latest job cuts are in addition to the 3,000 positions previously announced during the fourth quarter of 2008.

Motorola estimates that its cost reduction efforts will result in additional annual cost savings of approximately $700 million in 2009. The savings from these actions, together with the $800 million of savings from other actions announced during the fourth quarter of 2008 are expected to result in aggregate cost savings of $1.5 billion for the company in 2009.

Motorola also provided the following preliminary results for Q4 2008.

  • During Q4, Mobile Devices shipped approximately 19 million units. Sales were adversely impacted by continued weakness in end consumer demand and customer inventory reductions.

  • Motorola's Enterprise Mobility Solutions and Home and Networks Mobility businesses continued to perform very well in a challenging environment.

  • Total Motorola sales for the fourth quarter of 2008 are expected to be in the range of $7.0 billion to $7.2 billion.

  • On a GAAP basis, the Company expects a net loss from continuing operations in the range of $0.07 to $0.08 per share, including estimated net charges of approximately $0.06 per share relating to items typically highlighted in the Company's earnings press releases. These items include reorganization of business charges, impairments of Motorola's investment in Clearwire and in investments in the company's Motorola Ventures portfolio, a previously disclosed impairment in the company's Sigma Fund, offset partially by a gain from the decision to freeze the U.S. pension plan, and income from the collection of a legal settlement and the extinguishment of a liability.

  • Motorola ended the year with a total cash position of approximately $7.4 billion.

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