The Google-owned Motorola Mobility will undergo a major restructuring in the months ahead, according to reports from The New York Times. The paper reports that the Motorola mobile device business, acquired by Google in May, will lay off some 20 percent of its workforce -- including 40 percent of its vice presidents -- and close up shop at one third of its offices. The loss-making manufacturer will also refocus its efforts n creating fewer handsets in general, and fewer low-end devices specifically. As such, Moto told the paper it planned to buy half as many components as a result.
The NYT reports that around one third of the 4,000 of the job losses will be in the U.S., while the company will leave unspecified "unprofitable" markets. Similarly, Moto will cut back its presence in India and Asia, and base its research and development efforts in Chicago, IL, Sunnyvale, CA and Beijing, China.
Compared to 2011, the past eight months have been relatively quiet at Motorola, as the company transitions to being a fully-owned Google subsidiary. We certainly welcome the idea of more hero devices and less low-end stuff. However, the mobile device business remains fiercely competitive, and the strategy won't guarantee to lift Moto out of its current slump. Taiwanese phone maker HTC has embarked upon a similar plan this year, with limited success thus far.
Source: The New York Times