Catherwood LibraryILR School

Motorola, the world's number two mobile phone maker, will shed 3,500 jobs in an effort to stem falling profits. Chief Executive Ed Zander revealed the job cuts after profits at Motorola almost halved in the three months to the end of 2006. Fourth quarter profits tumbled 48% to $624 million from $1.2 billion at the same time last year. The fall in profits reflects price cuts in mobile phone prices and tougher competition among premium products. Illinois-based Motorola has 23% of the global mobile phone market, but lags behind Finland's Nokia.