Motorola cutting 4,000 jobs (CNNMoney)

[eppur_se_muova]

By Kenneth Musante, CNNMoney.com staff writer
Last Updated: January 14, 2009: 6:33 PM ET

NEW YORK (CNNMoney.com) -- Electronics maker Motorola said Wednesday it will be cutting 4,000 jobs this year in an attempt to cut costs. The new job cuts follow the announcement of 3,000 job eliminations in late 2008.

About 3,000 of the newly announced cuts will come from Motorola's Mobile Devices division, which has been under pressure from plummeting mobile phone sales. The rest will come from corporate and business divisions, according to Motorola.

Motorola's Mobile Devices division shipped about 19 million units during the fourth quarter, the company said, which is down significantly from the 40.9 million units reported shipped during the same period a year ago.

"They're losing so much money in handsets that they're facing negative cashflow in 2009 for the entire company," said Edward Snyder, principal analyst with Charter Equity Research.

With the slowdown in the global economy, profit from Motorola's other businesses are no longer enough to sustain the weight of the company's money-losing handset division, according to Snyder.
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more: http://money.cnn.com/2009/01/14/news/companies/motorola_jobs/index.htm

[MercutioATC]

1. Apple and RIM are killing them in mobile hardware.

Motorola always used to be cutting-edge, but the iPhone and the Storm are the hot new phones now.