Motorola Shakes Up Operations Again

Two days before Motorola Inc. was expected to unveil a second straight quarter of dismal earnings, the company announced a reorganization to cut costs and get itself back on track.

The embattled corporate giant has combined its network equipment and television set-top box divisions into one unit targeting service providers. It also removed the enterprise group from the network equipment sector, placing it into its own unit. The enterprise arm serves corporations and government agencies. Motorola left its biggest business, the mobile devices unit, largely intact. However, it did move the mobile e-mail sector to the enterprise division.

The reshuffling comes just months after a leadership shakeup and thousands of job cuts. Chairman and CEO Ed Zander also continues to fight for his position amid rumors that he will be forced to resign.

In the last three quarters, Motorola’s wireless phone shipments have dropped from 66 million to as low as 35 million. Analysts expect sales to drop 27 percent, from $11.8 billion in the fourth quarter of 2006 to around $8.6 billion for the second quarter of 2007. Motorola also has warned its mobile phone unit will not turn a profit at all in 2007.

Motorola will release its second-quarter earnings on July 19.

Motorola Inc. www.motorola.com

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