Motorola Lands China Deals And Cuts More JobsMotorola Lands China Deals And Cuts More Jobs

Within days of saying that it's increasing the job cuts planned for next year to more than 40,000 people, chip and wireless vendor Motorola Inc. unveiled two contracts worth $95 million to supply China's largest operator of mobile-phone networks with hardware and services. Motorola (MOT--NYSE) will deliver its Horizon Systems GSM system to help expand China Mobile's Global System for Mobile Communications network in Beijing and Sichuan. It will also install equipment to expand China Mobile's General Packet Radio Service in Beijing.

China has been the bright spot for Motorola, with deals worth $1.44 billion this year. Motorola needs the lift. Last week's announcement of 9,400 job cuts, by layoffs or selling businesses, brings total planned cuts to 42,900 from a workforce that numbered about 150,000 in August 2000. The company lost $153 million in its third quarter ended Sept. 30, and sales declined 22%. It's forecasting flat fourth-quarter sales. Motorola is in two floundering markets, semiconductor and telecom. Says Technology Business Research analyst Bill Lesieur, "Those industries are going through the worst slumps anyone has ever seen."