Motorola Announces 4,000 Job Cuts

Motorola started its first month of year 2009 by announcing a massive job cut involving 4,000 employees in its worldwide operation.

The continued slump of its mobile phone sales has forced the company to streamline a drastic measure by cutting the number of workers and reducing operating expenses. 19 million cell phones were sold in 2008, 4 million short of analyst expectation.

The 4,000 figure represents 6% of its total workforce, and the company expects to spare $700 million cash in savings. 3,000 unfortunate employees will come from the mobile devices unit, while the remaining will be made up of workers in corporate and business divisions.

The company did not reveal which countries will be affected by the layoff move, but as many quarters are closely monitoring the situation, things are abound to be unfolding.

The layoff is in addition to 6,500 job cuts already made in 2008, and the latest move brings the total to pass the 10,000 job losses.

Motorola is presently trailing far behind rival Nokia, which continues to widen the market gap as the latter produces more and more best selling models. Motorola’s range of mobile phones is limited and in addition to that, it seems to have lost its momentum after the successful launching of the Razr phone in 2007.

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