vacancies advertise contact news tip The Vault
EPIC HEXUS COMPETITION: Win a Moto 360 or Omate X smartwatch.! [x]
facebook rss twitter

Motorola cuts 4,000 jobs in Google inspired restructure

by Mark Tyson on 13 August 2012, 12:45

Tags: Motorola (NYSE:MSI), Google (NASDAQ:GOOG)

Quick Link: HEXUS.net/qabktv

Add to My Vault: x

Motorola Mobility will cut 4,000 staff as the company seeks to rationalise its range of Android smartphone offerings, refocusing on the high end of the market. The layoffs amount to 20 per cent of the workforce, also a third of the 94 offices worldwide will be closed.

Dennis Woodside, Motorola’s new chief executive spoke to the New York Times about the Motorola turnaround strategy he is about to embark upon; “We’re excited about the smartphone business” he said. His plans for Motorola smartphones include drastically cutting the current range to concentrate on high end smartphones with “cool” features designed by an “advanced technology” group in the company headed by an ex Pentagon DARPA (Defense Advanced Research Projects Agency) scientist. The company is hiring AI experts, materials scientists and other engineers to give Motorola smartphones desirable and useful USPs.

Currently Motorola has a line of 27 phones on offer; the amount will be reduced drastically and overall will use half as many components, under the management of former Amazon Kindle supply chain manger Mark Randall. Mr Randall said Motorola had been spending too much money on too wide a range of components.

Google acquired Motorola in May, mainly for the value of the communications patents. Motorola Mobility was once a dominant player in the mobile phone market in the era when the clamshell design was king. Rival Android handset makers will be watching what happens closely as they fear Google favouring Motorola and therefore giving the competitive advantage to its child company. Mr Woodside reiterated Google’s promise not to favour Motorola over other manufacturers. Also for instance Google Nexus device hardware partnerships are still open to any manufacturer.

The big question is – will the new Motorola, more focused on high end “cool” feature smartphones, be able to crash the Apple/Samsung party? In the past quarter Nokia, Sony, RIM and LG have all trailed way behind these two smartphone titans despite their best efforts.



HEXUS Forums :: 4 Comments

Login with Forum Account

Don't have an account? Register today!
The layoffs amount to 20 per cent of the workforce, also a third of the 94 offices worldwide will be closed.
I never failed to be amazed at how many big technology companies think that firing 1 in 5 (or 1 in 4) of their engineers will magically improve the bottom line long term. I'd also be fascinated to hear of any occasion where that (accountant-lead?) strategy actually worked.
Currently Motorola has a line of 27 phones on offer; the amount will be reduced drastically
Hmm, that does sound a little on the excessive side. Then again is that phones in total or only smartphones? And as a matter of interest, what is the comparable figure for Samsung?

My problems with Motorola is that they appear to be "premium pricing" for something that's not actually anything special; they seem to be pretty much focused on the US market; and their Android phones have a reputation of being difficult to gain control of and not updated very often.
Yes, 27 phones on the US site [motorola.com], most are Android phones, many are very ugly too.
Phones nowadays are all about fashion.

You hear people talking about their iPhone's, Blackberry's, etc.

How often do you hear "check out my new Motorola".

XD
mtyson
Yes, 27 phones on the US site [motorola.com], most are Android phones, many are very ugly too.

And have no software support from Motorola.

Loved my milestone 2 smartphone, best qwerty phone - let down by its software glitches that Motorola never fixed.
Motorola have little software support for they products and less so in the UK. Xoom owners have had to wait 6 months for the ICS update compared to the US devices. Thank the lord it can be changed to a GED device.