Motorola Profit Plunges; Cell-Phone Maker Will Also Cut 3,500 Jobs

Motorola Inc. (MOT) CEO Ed Zander said Friday the cell-phone maker will cut 3,500 jobs as it moves to improve operating costs after a worse-than-expected fourth quarter.

Zander, speaking to analysts at a meeting in New York, said the move will save the company about $400 million over two years. He did not immediately elaborate on the cuts.

The announcement came after the world's No. 2 handset manufacturer reported that fourth-quarter profits fell 48 percent despite record sales as operating results stumbled during the key holiday selling season.