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Motorola shares have been healthy this year
(Agencies) |
Motorola, the world's second
largest mobile phone maker, is cutting 1,000 jobs although its core cellphone business will
be unaffected.
The cuts, affecting 1% of the US firm's workforce, will fall in its
digital security, car navigation and broadband cable divisions.
Motorola will pay $50m (£27m) in severance payouts although it stressed
its total workforce would not decrease.
Analysts said the cuts were an attempt to fine-tune the firm's
operations.
Global demand for mobile phones remains healthy.
However, fierce competition among manufacturers and a sluggish recovery
after a three year downturn in the telecoms sector has forced firms to
make savings.
Most of the redundancies will come in the third half of the year,
Motorola said.
The company is continuing to hire new staff and employee numbers will
remain roughly stable.
"This does not mean our work force number is going to go down," said
spokeswoman Jennifer Weyrauch.
Analysts said the firm's underperforming broadband division could take
the brunt of the job losses.
Motorola's sales rose 40% in the second quarter of the year and its
third quarter figures are expected to be similarly healthy.
However, the company posted a second quarter loss of $203m as a result
of a $900m exceptional charge.
Motorola is hoping to raise $218m from the sale of shares in telecoms
firm Nextel Communications.
(Agencies) |