Mobile phone manufacturer Motorola will cut 4,000 jobs. Image: Motorola.

US mobile phone firm Motorola is slashing 4,000 jobs in 2009, approximately 6% of its total workforce, on top of the 3,000 job losses announced last month.

Motorola has faced tough times in recent months due to the economic downturn and the dwindling consumer market. During 2008, the mobile phone giant cut a total of 6,700 jobs. These latest cost-cutting measures are expected to save the company roughly $1.5 billion (£1.03bn).

The job losses will begin immediately and will include 3,000 positions in the Mobile Devices business, with the remaining 1,000 positions cut from other units.

Sanjay Jha, Co-Chief Executive Officer of 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.”

2008 fourth quarter results showed that the firm sold 19 million devices, down from 40.9m in the fourth quarter of 2007. The company blamed the significant drop in sales on weakness in consumer demand and customer inventory reductions.

“The Company ended the year with a total cash position of approximately $7.4bn,” said Greg Brown, President and Co-Chief Executive Officer of Motorola. “Today’s (14 January) actions will allow us to reduce further costs, improve operating cash flow and help ensure that Motorola remains competitive and financially strong during these challenging times.”