Motorola Inc. introduced a series of cost reductions to help the embattled handset manufacturer not only weather the sluggish economy but also survive in a competitive mobile-device market.

Co-CEOs Greg Brown and Sanjay Jha will take a voluntary 25 percent cut in their base salary for 2009. Mr. Brown will also give up his 2008 bonus, with Mr. Jha forfeiting an amount equal to his colleague's bonus cut and taking the rest in restricted stock.

"[The] announcement details specific cost savings actions that are expected to result in savings in addition to the $800 million that was previously announced on Oct. 30, 2008," said Motorola spokeswoman Kristine Mulford.

The top-level changes are among several that Motorola has introduced as part of plans to cut costs over and above the $800 million announced in October.

Motorola's cost-reduction program also calls for permanently freezing its U.S. pension plans, starting March 1.

Vested benefits accrued by employees and retirees will be preserved, but future benefit accruals will be eliminated.

The Schaumburg, IL-based company clarified that it would continue to provide funding to meet its pension obligations to current and future Motorola retirees.

Motorola will also temporarily suspend all company matching contributions to its 401 (k) plan.

U.S. employees may continue to contribute to the 401 (k) plan but without matching contributions from Motorola.

Finally, many Motorola employees in markets where it operates will not get a salary increase next year.

The company posted revenue of $36.6 billion last year from sales of mobile phones, digital set-tops, cable modems, Bluetooth accessories, enterprise mobility services and communications infrastructure offerings.

Motorola's Razr flip phone is one of the most popular mobile devices nationwide. But that has done little for Motorola against newer smartphones from rivals such as LG, Samsung, Nokia, Research In Motion and Apple.

"As we head into 2009, we must remain nimble and will continue to look at potential cost savings that will preserve our cash position," Ms. Mulford said. "We are taking these actions to manage our cash flow and make sure we respond to the changes in the competitive market."