More Moto Cuts Rumored

9:40 AM -- It seems there's more dire device business news to come from Motorola Inc. (NYSE: MOT) in 2009. Speculation is mounting that Motorola is set to announce later this week major cost cutting measures, including more layoffs in its struggling handset division.

A report in Phone Scoop says the job cuts could be as much as half of its staff in the device business. The report also says that Moto will not have a booth at this year's CTIA Wireless show in Las Vegas in April.

Another report says that employees working on phones based on Google (Nasdaq: GOOG)'s Android will be safe from the pending layoffs.

Motorola has already announced 3,000 job cuts from the handset business late last year and started to speed up the process of laying off those employees in December. On top of that, Moto has a company-wide salary freeze and is no longer contributing to employees' retirement schemes. (See Moto Speeds Up Layoffs, Moto Freezes Benefits, Salaries, and Sanjay Jha Makes His Mark at Moto.)

— Michelle Donegan, European Editor, Unstrung

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