Motorola - developer of the PowerPC chip - has announced job cuts of 7,000 in its personal communications sector, citing continuing deterioration in the mobile-handset market. Motorola has cut 16,000 jobs in the last six months.

Margot Brown, a Motorola spokeswoman said: "The reductions will affect all aspects of the business, including engineering and administrative staff."

The cuts will be completed by the end of the second quarter and will affect staff globally. Motorola has about 120,000 employees. Brown also added that additional cost-cutting announcements are on the way from Motorola.

Three weeks ago, Motorola laid off 300 workers from its personal-communication sector, pledging to make cuts until it trims $2 billion from the division's manufacturing and non-manufacturing operations.

In February, the company cut 4,000 jobs from its semiconductor unit and 1,320 employees lost their jobs in December, as a result of a $1 billion manufacturing alliance with electronics manufacturer Celestica.