Motorola to Cut 4,000 Jobs, Predicts Miss

Job cuts aren't anything new for Motorola, which has swung the ax multiple times as the company's handsets have fallen out of style. After its disappointing third-quarter earnings release in October, Motorola announced it would slash 3,000 jobs, with two-thirds of the cuts will come from the mobile devices segment. In December, Motorola said it would permanently freeze its U.S. pension plans and would temporarily suspend matching contributions to employee 401(k) plans as part of its bid to cut costs.

In total, the cost-reduction initiatives are expected to result in annual cost savings of approximately $1.5 billion in 2009, Motorola said.

"The actions we are taking today in our Mobile Devices business will allow us to further reduce our cost structure and positions us for improved financial performance in 2009," said Sanjay Jha, co-chief executive officer of Motorola, in a statement. "Together with these actions and the announcements made in the fourth quarter, the Mobile Devices business expects to recognize annual cost savings of approximately $1.2 billion in 2009."