While profits sank from US$1.2 billion last year to US$624 million for the fourth quarter of 2006, wireless handset sales jumped 47 percent.

Zander said the cuts will come from the networks and enterprise group, as well as overlapping positions created with the recent acquisitions of Symbol Technologies and Good Technology.

The companies best chance for future profits can be found in mobile communications, according to Zander.

Sandra Rossi contributed to this report.