USA Today reports that Motorola has announced that it will lay off 3,500 employees. The news follows a fourth quarter that showed profits down 48%. Stocks jumped after the announcement.
Zander, speaking to analysts at a meeting in New York, said the move will save the company about $400 million over two years. The cuts from Motorola's workforce of about 70,000 are to be spread across the company globally and completed in the first half of 2007.
The world's No. 2 handset manufacturer also said it will beat Wall Street estimates for 2007 sales by as much as $3 billion, forecasting a full-year total of $46 billion to $49 billion. Analysts had predicted sales of $45.9 billion.
The announcements sent Motorola's stock surging despite a fourth-quarter earnings report that showed profits down 48% from a year earlier on a stumble in operating results from its handset business.
The announcement came after the world's No. 2 handset manufacturer reported that fourth-quarter profit fell 48% despite record sales as operating results stumbled during the key holiday selling season.
The article also says that Motorola's CEO Ed Zander believes there is still strong demand for the company's Razr brand. Motorola has sold 75 million Razrs so far worldwide.
