Motorola cutting jobs as part of controlling expenses

Motorola cutting jobs as part of controlling expenses

World’s second largest mobile phone maker Motorola has announced their plans to cut 3,500 jobs. This announcement comes just days after they revealed sharp fall in earnings due to an industry price war.

The company had recently reported that their revenues surged by 17 percent to a record 11.8 billion dollars in the fourth quarter through December. However, their net profits slumped 48 percent to 624 million dollars.

Motorola is suffering from intense competition from the market leaders Nokia as they have to cut prices of their mobile phones to stay competitive in the market.

These job cuts mean that the company is getting rid of around five percent of their global workforce. Motorola expects to save 400 million dollars over the next two years through these cuts.