Motorola China Downsizes As Mobile Phone Sales Plunge

Motorola has begun a new round of job cuts, cutting about 1,000 staff in China.

A PR representative from Motorola China has confirmed the staff reduction with local media, but the company has not given an exact figure for the cuts.

According to an employee from Motorola, people affected are all from the mobile phone department. The person said that there were 450 staff in the mobile phone development team, but it has been reduced to less than 100.

A representative from Motorola explained that the personnel adjustment was made according to the requirements of product strategy and with regard to the current economic situation. However, the person did not give a direct answer on how the company would compensate those staff involved.

Motorola's financial results for the fourth quarter of last year show that the company suffered a loss of USD3.6 billion in the quarter with its mobile sale declining by 53%.

This is the second round of staff reduction at Motorola in three months. At the end of 2008, Motorola cut nearly 600 staff from its development team in China.

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