Motorola to Cut 4,000 Jobs in Network Unit

Motorola Inc., the No. 2 cell-phone maker, said that it plans to eliminate 4,000 jobs in its network-equipment business as part of an effort to remain competitive in a slowing economy. The company since December has proposed shrinking its payroll by 15%, or 22,000 employees. Chief Executive Chris Galvin has been struggling to boost sagging sales growth and narrowing profit margins. By slashing jobs, however, he risks losing talented employees, which may make Motorola less competitive in its battle with No. 1 cell-phone maker Nokia of Finland and other rivals, analysts said. “Another week, another set of layoffs,” said Brian Modoff, a Deutsche Banc Alex. Brown analyst, who rates Motorola a “hold.” “They cannot become less competitive in terms of development. With a shrinking talent pool, they could be put in a nasty spiral. Technology doesn’t stop advancing.” The reduction at Motorola’s Network Sector, which makes two-way radios, cell-phone tower equipment, TV set-top boxes and modems, will result in unspecified charges in the first half, spokeswoman Margot Brown said. Motorola shares, which have plunged 70% in the last year, rose 31 cents to close at $15.99 on the New York Stock Exchange.