Bad news for the house that the RAZR built (or more accurately, the people that work within that house). Motorola announced Wednesday that it will cut another 4,000 jobs as part of a plan to improve sagging financial and operational results. This new cuts bring the grand total to approx. 10% of Motorola’s workforce that they company has announced eliminating since the start of 2007.
“Long-term, sustainable profitability is – and always has been – Motorola’s top priority,” Chief Financial Officer Tom Meredith said. “Today’s actions are an update to the commitment we made … to drive out additional costs, and a continuation of the plan we announced in January.”
Combined with the previously announced layoffs (to be completed by June 30th), Motorola is expecting to save a whopping 1 billion dollars with these new cuts. Motorola didn’t specify when the new cuts would be made.
Check out market and analyst reaction after the jump.
“From a cost-cutting perspective, these are steps in the right direction for the long term,” said Morningstar analyst John Slack. “But the big issue to underscore is that products in the market are the key, and that is a slow ship to turn.”
Motorola’s work force, which stood at 150,000 people worldwide as recently as 2000, had declined to 66,000 at the beginning of the year. Wall Street appeared to modestly approve of the latest cuts. Motorola shares rose 12 cents in extended-hours trading after closing the regular session down 2 cents at $18.28.