Motorola to Revamp Phone Equipment Unit

Schaumburg, Ill.-based Motorola Inc. said it will reorganize its phone equipment business to better coordinate product development, and it named Merle Gilmore to head the effort. Chief Executive Christopher Galvin wants to develop packages of products from different units for the Internet, software systems and wireless data services. Motorola’s products include pagers, wireless phones and equipment for phone networks. The reorganization comes as Motorola struggles to boost profit and correct production problems that have put it behind competitors in bringing out new products. Gilmore, 50, will oversee the reorganization as deputy to the chief executive for the so-called Enterprise-Wide Communications Business Plan. Motorola shares fell 94 cents to close at $55.25 on the New York Stock Exchange. The stock has fallen 4% this year.