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Motorola posted a third-quarter net loss and revenue fell a steeper-than-expected 15 percent as the company struggled to regain its footing in the cell phone market.
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The Wall Street Journal also reported Thursday that the telecom equipment maker will slash 3,000 jobs in a cost-cutting effort.
The newspaper quoted Motorola co-CEO Greg Brown as saying that two-thirds of those firings will come from within the company's cellphone division, which is known as mobile devices.
Motorola said when it reported earnings that it plans a total of $800 million in cost cuts.
Motorola also plans to delay the spin-off of its mobile device business due to the macro-economic environment. But it still plans to spin off the unit, which was originally slated for third quarter 2009, the company said.
Schaumburg, Illinois-based Motorola, which has been hit with a string of disappointments since late 2006, posted a net loss of $397 million, or 18 cents a share compared with a profit of $40 million or 3 cents a share in the year-earlier quarter.
The latest quarter included charges of 23 cents a share for items such as asset impairments and business reorganization.
Revenue fell 15 percent to $7.48 billion, compared with average analyst estimates of $7.8 billion, according to Reuters Estimates.
The No. 3 mobile phone maker shipped 25.4 million phones in the quarter compared with shipments of 37.2 million phones a year earlier.
It faces stiff competition from bigger established rivals Nokia and Samsung Electronics as well as Apple's [AAPL
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] popular iPhone.
Motorola [MOT
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] forecast fourth-quarter earnings per share from continuing operations of 2 cents to 4 cents and full year earnings per share in a range of 5 cents to 7 cents, excluding any reorganization charges.
Since being named Co-CEO and head of the cell phone unit in August, Sanjay Jha's main objective is to bolster Motorola's handset lineup, which has been criticized since its once-lauded Razr phone lost its luster.
- CNBC.com staff contributed to this report.
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