Motorola announces business reorganization plan – struggles to cut costs amid massive lay-offs

Poor little Motorola (NYSE: MOT). They just can’t catch a break. Even after cutting 4,000 jobs, the handset manufacturing giant is still bleeding from the accounting sheet – they’re bleeding red and it’s sad. And, to rub even more ironic salt into their financial wounds, the company announced a business reorganization hot on the heels of their announcement of a second quarterly loss in as many quarters.

Apparently, letting thousands of employees loose didn’t save the company enough cash to get into the positive. What’s an ailing tech-giant to do? The company is having difficulty competing against the snazzier, better-value handsets of rivals like Samsung and Nokia (NYSE: NOK). Well, if you can’t beat ‘em, join ‘em. Motorola will be consolidating their network equipment division with their set-top TV box division. The enterprise unit, geared towards corporate and government clients, will be made a separate entity – with the mobile phone division remaining untouched. The three-pronged approach mimics Nokia’s customer-targeted structure.

Moto must really think that their mobile division is robust enough on its own to make headway in a market stuffed with better-value handsets. Look we’re not saying they’re wrong, but they better be busting out with the cool and new before it becomes yesterday’s news. There are people still rooting for you, Moto, go out there and make good by us!

[Via: Yahoo News]