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

Categories: Announcements, Motorola
By: , IntoMobile
Wednesday, July 18th, 2007 at 12:10 PM

Poor little Motorola. 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. 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]

About The Author

Will Park

Will hails from The City of Angels - Los Angeles, California. He spends his time playing with his numerous gadgets and looking forward to seeing what future holds for mobile technology. An avid promoter of a fully "digital" life, he promotes the widespread adoption of truly mobile, paper-less living. He dreams of the day when he can go completely digital. No more snail mail, paper receipts, bound books, notepads/spiral notebooks, credit cards, hard currency. He's a digital warrior - fighting for the converged life. He is an idealist and a realist - he has a perfect view of what the world should be but knows that the world is not perfect. Can we ever hope to see Will's dream become reality? We'll see...

  • Tim

    I think the title of this news story (… “plans to cut another 7,500), which implies a NEW set of 7500 job cuts, is misleading. The Yahoo story, if read carefully, I think really only mentions the original 7500, which will be completed by the end of 2007.

  • Jack

    This article is misleading, the 4000 is included in the 7500 cut, dumb author!

  • Will Park

    The title is indeed misleading, my apologies. It has been corrected.

    @Jack
    Apologies to you, do you work for Motorola or something? :wink: