Motorola cuts 3,500 jobs as profit drops sharply

Following Nokia, Motorola is the world's second-largest wireless handset vendor. Despite the company's recent success, Motorola has recently reported a 48% plunge in its fourth quarter profit, from $1.2 billion in 2005 to $624 million in 2006. In an effort to maximize profits for its wireless handsets, the company will cut 3,500 of its 70,000 employees, lowering its corporate cost structure by $400 million by the end of 2007. The jobs will be cut mainly from an internal reorganization necessary after Motorola's recent acquisitions of Symbol Technologies and Good Technology. The cuts will affect workers scattered through Motorola's global offices and will be completed during the first half of 2007.

News source: InfoWorld