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Motorola warns on estimates; cuts 7,000 jobs

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Chicago--Motorola Inc. on Wednesday warned that it expected a fourth straight quarterly loss, which would result in the first full-year operating loss in at least 45 years for the wireless technology giant. The company cited the slump in demand for telecommunications equipment as the reason for the continued losses and said it would slash an additional 7,000 jobs, raising the number of cuts for the year to 39,000 jobs, or 26% of the work force. Motorola said it expected a loss of 4 cents to 5 cents a share in the fourth quarter; analysts had been expecting the company to report a profit of 1 cent a share in the fourth quarter. Motorola shares were at $17.70 in early trading on the New York Stock Exchange Thursday compared with $16.50 in early morning trading on Wednesday. Motorola COO Robert Growney said 4,000 of the 7,000 job cuts would come through the sale of businesses. The company expects the work force to be 108,000 by the end of the year.
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