The global financial crisis has reared its head at Motorola, and the company has cut about 1000 staff in China in the last couple of months.

A public relations representative from Motorola China has confirmed the staff reduction to local media. People affected are all from the mobile phone department. There were reportedly 450 staff within the mobile phone development team, but it has now just been reduced to less than 100. At the end of 2008, Motorola reduced up to 600 staff from its Chinese development team.

A representative from Motorola explained that the personnel adjustment was made according to the need of product strategy and the current economic situation. However, the person did not give a direct answer on how the company would compensate those staff involved.

Motorola's financial results for the fourth quarter of last year show that the company suffered a loss of USD3.6 billion in the quarter with its mobile sales declining by 53%.