Motorola Inc, which lost US$3.6 billion in the fourth quarter, has started to lay off employees in China, mainly in the handset research division in Beijing, the United States-based telco said on February 11.

Motorola, the former No. 2 handset maker in the world, recently announced it would cut 4,000 jobs globally, with 3,000 in handset divisions globally, to save costs.

"We have started to inform the people involved, and we strictly obey the labor laws of China," said Chen Lei, a spokesperson of Motorola China.

Motorola China has laid off several hundred people to 1,000 people in China, media reported yesterday.

Chen, however, declined to reveal the detailed numbers of employees who have lost their jobs based on regions.

Global handset sales for Motorola plunged 53 percent from a year ago to 19.2 million units.

The global financial crisis has eroded consumer confidence, and this has caused buyers to delay replacing their phones. Motorola is losing market share to rivals Nokia, Samsung and LG, industry insiders said. This year, handset shipments globally will drop by 5 percent amid the tough economic environment, according to iSuppli, a US-based research firm.

(Shanghai Daily February 12, 2009)