Motorola cuts another 9,400 jobs

Motorola is cutting another 9,400 jobs.

It's shedding more than 8% of its work force in a push to return to profitability in 2002.

It aims to save at least $1bn per year from 2003 following the cuts, with savings of almost $900m in 2002.

The cell phone and semiconductor maker has now shrunk its work force by 32%.

There have been 42,900 layoffs and 5,500 jobs lost through sales of businesses since August 2000.

Although Motorola is sticking to its forecast for the fourth quarter it now believes its losses will be greater than expected in the first quarter of next year.

The latest round of job cuts, to be made over the course of the next year, include 4,000 from its semiconductor operations, 1,300 from its equipment manufacturing businesses and another 4,100 distributed companywide.

Company spokesman Scott Wyman said they will take place across all Motorola's businesses and most geographic regions where it operates, including its headquarters in Schaumburg, Illinois. He declined to be more specific.

Motorola, the world's second largest cellphone manufacturer and a leading computer chip maker, disclosed the cuts while confirming it is headed toward a fourth straight quarter in the red in the current three-month period, with operating losses about the same as estimated in October.

Christopher Galvin, chairman and chief executive officer, regrets the continuing layoffs but sees them as necessary for a "leaner, more flexible and more profitable company" in an unpredictable global environment.

He is pleased with the progress Motorola is making in its long-slumping cellphone business but has to remain conservative going into 2002. The company expects to be profitable for the full year next year, he said.