Motorola plans to cut 3,500 jobs in the first half of 2007 to reduce costs and help it return operating margins to the double-digit percentage range, executives said today.
The world's second-biggest maker of mobile phones outlined the plan to cut 5% of its 70,000-strong work force after reporting that fourth-quarter profit fell by 50%, hurt by a sharp drop in phone prices amid stiff competition.
Executives said the job cuts would affect middle managers.
'Our goal is to return to double-digit operating margins in the second half of this year,' CEO Ed Zander said.
Fourth quarter profits fell 48% to €482m from the same period last year.
Motorola partly blamed the lower quarterly profit on price declines on its most expensive phones with high-speed wireless connections and on cheaper phones sold in emerging markets, where competition was tough.
Motorola has 23% of the global mobile phone market, with Finland's Nokia the biggest player.
