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Motorola, the second largest mobile phone maker in the world, has announced plans to cut 4,000 more jobs as part of its effort to trim costs and return to profit.

The latest job cuts, due to be implemented by the end of the year, come on top of an earlier 3,500 job reduction designed to generate annual savings of $400m.

Taken together, the move will reduce Motorola’s global workforce, which stood at 66,000 at the end of 2006, by more than 11 per cent and underscores the determination of Ed Zander, Motorola’s chief executive, and his senior management team to cut costs and get Motorola back on track.

Motorola, which reported a first-quarter loss after its strategy to lift market share fell apart and margins collapsed, said it expected restructuring charges of about $300m, or about 8 cents per share, over the rest of 2007 as a result of the additional job cuts.

The company, which said it was on track to complete the previously announced job cuts by June 30, forecast an additional $600m in annual cost savings next year as a result of the extra job cuts and other moves including spending controls and site rationalisation.

“Long-term, sustainable profitability is – and always has been – Motorola’s top priority,” said Tom Meredith, chief financial officer. “We are confident the steps we are announcing today, together with the actions we have outlined previously, will further improve the company’s financial and operational performance.”

The news came as Motorola revealed that Carl Icahn, the billionaire Wall Street investor who launched a proxy battle this year for a board seat after building up a 2.9 per cent stake in the company, won 717.7m votes compared with 931.7m cast in favour of the board’s preferred candidate.

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