Motorola is planning to cut some 30,000 jobs by the end of this year as part of a $1.8 billion cost-saving initiative, chief operating officer Mr Bob Growney said today.
Speaking on a conference call to outline details of the company's second-quarter earnings yesterday, Mr Growney said the job cuts, combined with other cost reduction measures, will allow the company to save a total of $1.8 billion for the year.
"As we enter the third quarter, visibility remains low," said Growney. "We expect another difficult quarter from the profit perspective but there has been one development of significance and that is that our backlog has increased."
He reiterated the semiconductor and technology group company expects sales to grow five percent in the third quarter while returning to profitability in the fourth quarter.
Motorola reported a second-quarter loss of 11 cents a share, down from a profit of 25 cents a share a year earlier, but a penny narrower than the market consensus.
The company's net loss amounted to $232 million contrasted with a profit of $551 million a year earlier.
AFP