Motorola job cuts to improve efficiency

Motorola is cutting 4,000 jobs in its semiconductor unit as part of bid to reduce its spending and improve profitability and efficiency.

In a statement, the company said the job cuts will be achieved by ending the assignments of contract and temporary employees and voluntary and involuntary severance programs.

The losses are the third round to be announced in 10 weeks. No specific locations for the job cuts were announced. The Schaumburg, Illinois-based company's semiconductor operations are based in Austin, Texas.

Fred Shlapak, president of the company's semiconductor products sector, said: "Each of our business units and support organisations has reviewed its circumstances and is making the necessary adjustments to help the sector meet its goals.

"While job reductions are extremely painful, they are a necessary part of our cost-reduction needs."

He said some of the cost-reduction measures will be completed in the first quarter, while others will conclude later in the year, depending upon legal or regulatory requirements in various countries.

"At the same time," Shlapak said, "we are continuing to invest in R&D and build on our strengths to provide embedded solutions for the person, work team, home and auto."