Motorola announced plans to cut 3,500 jobs, or 5 percent of its work force. Motorola's CEO Ed Zander said the job cuts, which should be completed in the first half of 2007, will save the company about $400 million over two years.

Despite reporting strong Q4 sales of $11.8 billion, a 17 percent increase from Q4 2005, the company reported Q4 net profits of only $624 million, down a whopping 48 percent from the $1.2 billion it took in during Q4 2005.

"We are disappointed with our fourth quarter operating earnings performance," Zander said in a statement.

Its full-year results were similarly slumping. Motorola reported 2006 earnings of $3.67 billion, down 20 percent from $4.58 billion it recorded in 2005. Sales, meanwhile, rose 22 percent, to $42.9 billion from $35.3 billion.

By: DocMemory
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