US mobile phone and semiconductor company Motorola has announced it would lay off another 9,400 employees in a bid to return to profitability next year.
The job cuts will take the company down to a level of 100,000 worldwide employees from 150,000 in August 2000.
Motorola has been hit by a weakened economy and by operating problems of its own making, which have resulted in four consecutive quarters of loss. The company expects its current plant to improve efficiency and, combined with semiconductor plant closings and other measures, result in about $1bn in annual cost savings.
However company executives also indicated that they expect two more money-losing quarters after this one, making it six straight in the red, before an anticipated return to profitability in next year's third quarter.
Motorola admitted yesterday that its first-quarter loss will be greater than expected, rising from 11 cents per share to 14 cents.
The shake-up is the third restructuring since 1998 for the company, based in Schaumburg, Illinois, whose comeback efforts have been offset by troubles in the world economy.
Once the leading mobile phone maker, Motorola has posted small market-share gains in a slowed industry in recent months, with a range of new phones helping it to slightly narrow the huge deficit with dominant Nokia.
Industry experts remained sceptical about Motorola's latest claim that its recovery measures will soon pay off.
"Three years of restructuring, and now it looks like four," said analyst Brian Modoff of Deutsche Banc Alex Brown.
"In [mobile phone] handsets they've made some improvement. But it's a technology conglomerate and there are a lot of things going on. They clearly have a lot more work ahead of them in a challenging and competitive environment," he said.
The latest job reductions, 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.
Christopher Galvin, chairman and chief executive officer, said he regretted the continuing layoffs but sees them as necessary for a "leaner, more flexible and more profitable company" in an unpredictable global environment.
Motorola officials said on a conference call that the company's mobile phone market share increased by 4% this year and that they expect it to continue rising.
"Next year, we have a lot of fresh products and new opportunities," said the chief operating officer, Robert Growney, referring to phones that will use next-generation 2.5G and 3G digital technology.
