Schaumburg (Illinois) – Motorola announced yesterday that they would be cutting an additiona 4,000 jobs in 2009. This adds to the 3,000 they announced last October following the quarterly earnings report. Motorola’s shares fell 4.9% ($0.21) to close at $4.11 on the news.
Analysts had been expecting Motorola to announce $7.5 billion revenue. However, when it issued guidance on its Q4 earnings today the range fell between $7 billion and $7.2 billion, citing continued consumer demand weakness and customer inventory reductions. This equates to an estimated loss of 7.5 cents per share. Analysts were expecting a profit of 3 cents per share.
Motorola expects to save $700 million in 2009, and $1.5 billion annually after that with the additional staff reduction. In December, Motorola also announced a plan to freeze pension plans and reduce executive pay.
Most of the new job losses will be in the mobile device business, with about 1,000 tied specifically to corporate functions.
Motorols will have an Android phone by the 2009 holiday season, according to Motorola’s Co-CEO, Sanjay Jha. Motorola had been the number two handset maker until 2006. Today they are at number five.
UPDATED: January 15, 2009 – 7:07am CST
The IT Examiner reports on a source which says Motorola may pull completely out of the UK handset market until making a return in 2011. They quote one exception, the gold-plated, diamond-encrusted Diamond Motopure H12 which will continue to be sold at Selfridges.