 Motorola shares have been healthy this year |
Motorola, the world's second largest mobile phone maker, is cutting 1,000 jobs although its core cellphone business will be unaffected. The cuts, affecting 1% of the US firm's workforce, will fall in its digital security, car navigation and broadband cable divisions.
Motorola will pay $50m (�27m) in severance payouts although it stressed its total workforce would not decrease.
Analysts said the cuts were an attempt to fine-tune the firm's operations.
Fierce competition
Global demand for mobile phones remains healthy.
However, fierce competition among manufacturers and a sluggish recovery after a three year downturn in the telecoms sector has forced firms to make savings.
Most of the redundancies will come in the third quarter of the financial year, Motorola said.
The company is continuing to hire new staff and employee numbers will remain roughly stable.
"This does not mean our work force number is going to go down," said spokeswoman Jennifer Weyrauch.
Analysts said the firm's underperforming broadband division could take the brunt of the job losses.
Motorola's sales rose 40% in the second quarter of the year and its third quarter figures are expected to be similarly healthy.
However, the company posted a second quarter loss of $203m as a result of a $900m exceptional charge.
Motorola is hoping to raise $218m from the sale of shares in telecoms firm Nextel Communications.
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This does not mean our workforce number is going to go down 
