New York - Mobile phone maker Motorola said Wednesday it would permanently freeze contributions to its employee pension fund as part of a bid to sharply reduce costs.

The Schaumburg, Illinois-based firm said it would no longer contribute to the fund, but would maintain the benefits of those already vested in the programme.

It will also suspend its matching contributions to workers' 401(k) retirement accounts and not give pay raises to some employees next year.

Chief executives Greg Brown and Sanjay Jha will take pay cuts of 25 per cent and limit their bonuses. Brown will take no bonus, while Jha's will be reduced.

In October, the company cut 3,000 jobs in cost-cutting measures worth 800 million dollars.