Motorola to slash 3,500 jobs
By Colleen Taylor -- EDN, January 19, 2007
Reeling from "disappointing" Q4 results, Motorola Inc. today announced plans to cut 3,500 jobs, or 5 percent of its work force. In a meeting with analysts this morning that was broadcasted on the company's website, Motorola's CEO Ed Zander said the job cuts, which should be completed in the first half of 2007, will save the mobile phone maker about $400 million over two years.
Despite reporting strong Q4 sales of $11.8 billion, a 17 percent increase from Q4 2005, the company reported Q4 net profits of only $624 million, down a whopping 48 percent from the $1.2 billion it took in during Q4 2005.
"We are disappointed with our fourth quarter operating earnings performance," Zander said in a statement.
Its full-year results were similarly slumping. Motorola reported 2006 earnings of $3.67 billion, down 20 percent from $4.58 billion it recorded in 2005. Sales, meanwhile, rose 22 percent, to $42.9 billion from $35.3 billion.
Looking ahead to Q1, Motorola said it expects sales to decline to between $10.4 billion and $10.6 billion. For the full-year 2007, however, the company expects to post a stronger $46 billion to $49 billion in sales.
