After reporting a 48 percent plunge in its fourth quarter profit this week, Motorola will cut 3,500 jobs of its 70,000 employees by the end of 2007.

This will lower its corporate cost structure by US$400 million, according to the company's CEO Ed Zander.

Motorola Australia spokesman Russell Grimmer was unable to confirm if jobs will be axed locally, adding that the cuts will be spread across the globe.

Australia is a key part of Motorola's global road map. In software alone, Motorola Australia's annual exports have reached A$80 million (US$62 million) with the company setting up software development centers in Adelaide and Perth.

More than 600 IT staff are employed in the region and following Nokia, Motorola is the world's second largest wireless handset vendor.