Motorola said that it suffered a net loss of $397 million in the third quarter of the year after reporting a net profit of $60 million for the same period in 2007. Company lowered its forecast for the remainder of the year but said its cost-cutting moves would result in annual savings of some $800 million next year.
The company which had around 66,000 employees worldwide at the end of 2007 will have around 13,000 employees after the latest job cuts since January 2007 to 13,000. It said separation of the struggling mobile phone unit from the rest of the company was now 'targeted beyond 2009.'
"While our strategic intent to separate the company remains intact, we are no longer targeting the third quarter of 2009," Sanjay Jha, Motorola co-chief executive and head of its mobile devices division, said in a statement. He said that the delay can be attributed to 'the macroeconomic environment, stresses in the financial markets and the changes underway in Mobile Devices."
"As part of our plan to rebuild Mobile Devices, we have announced significant actions to accelerate the consolidation of our product platforms and refocus our investment and market priorities," he said.