Analysts had expected the new round of job cuts from the company, which was already hit by reduced demand for cell phones even before the economic downturn.

The company, which dropped to fourth place in the global handset market in the third quarter, said it expected to report a fourth-quarter GAAP loss per share in a range of 7 cents to 8 cents on revenue of US$7 billion (S$10.5 billion) to US$7.2 billion.

Analysts on average had expected revenue of US$7.5 billion, according to Reuters Estimates.

Motorola also said that handset sales had fallen to 19 million in the fourth quarter compared with estimates of 22 million and above from several analysts contacted by Reuters.

The company cited weakness in consumer demand as well as customer inventory reductions.

Motorola said the 4,000 job cuts as well as other cost cutting moves would help it to save an additional US$700 million in 2009, bringing total expense reductions to US$1.5 billion, including a savings plan announced in October.

Chief Executive Sanjay Jha said in a statement that US$1.2 billion of the savings would apply to mobile devices. He said that the company ended 2008 with US$7.4 billion in cash.

In October the company had announced a plan to cut 3,000 jobs, mostly from its mobile devices unity.

Motorola shares rose 1 per cent in after-hours trade to US$4.15 after closing at US$4.11. -- THOMSON REUTERS