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Motorola lays off another 4,000

RAZR phones fail to slice into new markets

Motorola has announced another round of layoffs - 4,000 to add to the 3,500 jobs it slashed in January.

The first lot are on schedule to be off the premises by the end of June, while the new round will take until the end of the year to clear their desks.

The cuts are an attempt to get the company back into profitability. Motorola posted a loss for the first quarter of 2007, and has been losing market share to Samsung and Nokia at home, as well as failing to make an impact in European and developing markets.

These new cuts, along with other cost-cutting measures, are an attempt to save the company $600m in 2008. Added to the $400m Motorola's saving from the first round of layoffs, the company should soon be back in the black - though the process itself is going to cost it $300m over the rest of this year. ®

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