Motorola reveals cost-cutting strategy

Motorola Inc. revealed scaled back industry growth expectations for cell phones and chips in 2003.

Company officials also announced further cost cutting plans – including a strategy to slash $3 billion more in costs in 2003 and 2004 by “improving production processes, lowering purchasing costs of materials and services and improving the quality of its operations, hardware and software.”

Officials with the company also said it now expects to reduce its work force to about 90,000 by the end of the year rather than the previously announced 93,000.

Motorola officials said it has cut about $4 billion in costs in 2001 and 2002 through restructuring.