Motorola Inc. will eliminate another 2,000 jobs this year because of weak demand for telecommunication equipment, the company said Thursday, and it also issued a warning that third-quarter sales will be flat compared to the second quarter, instead of up 5 percent as the company expected earlier.
The company expects to report losses in the third quarter of US$.05 to $0.08 per share, including pro forma adjustments, compared to a $0.11 per share loss reported in the second quarter, which ended June 30. The current consensus estimate for the quarter from analysts polled by Thomson Financial/First Call is a loss of $0.05 per share, including pro forma adjustments.
The job cuts come from Motorola's Global Telecom Solutions Sector (GTSS), the company's wireless infrastructure products division. Service providers have delayed capital expenditures, slowing growth in the infrastructure market and prompting the cuts to reduce costs, Motorola said in a release. The cuts will be complete by year's end, the company said.
Motorola has announced 32,000 job cuts since December 2000, either from outsourcing production to electronics manufacturers like Celestica Inc. or outright staff reductions.
The company's stock (MOT) fell more than 14 percent to $14 near the end of the U.S. trading day from the opening price of $16.40 on the New York Stock Exchange.