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Motorola will shed 1,200 more staff as smartphone woes continue

Not profitable yet
Fri Mar 08 2013, 10:47
Motorola logo taken at MWC

AMERICAN PHONE MAKER Motorola Mobility will slash a further 1,200 jobs in a bid to return to profitability.

Citing an internal company email, the Wall Street Journal reported on Friday that Motorola plans to cut a further 10 percent of its workforce, as the smartphone maker isn't making a profit.

The email allegedly tells Motorola staffers that "while we're very optimistic about the new products in our pipeline, we still face challenges," adding "our costs are too high, we're operating in markets where we're not competitive and we're losing money".

A Motorola spokesman said, "These cuts are a continuation of the reductions we announced last summer. It's obviously very hard for the employees concerned, and we are committed to helping them through this difficult transition."

Google bought Motorola in 2011 for $12.5bn, largely to acquire Motorola's extensive patent portfolio to support its Android mobile operating system, but it doesn't seem to have helped out much when it comes to Motorola's smartphone business.

First off, these aren't the first job cuts the firm has announced. Last August Motorola started laying off 20 percent of its workforce, a total of 4,000 employees, in a move that cost the firm $275m.

Motorola has struggled for several years to regain relevance and cachet in the smartphone market it pioneered. The Motorola Razr I is a decent smartphone, but it hasn't been innovative enough to see off fierce competition from Apple and Samsung.

If online chatter is accurate, Motorola could be tapped to produce Google's next generation Nexus smartphone, which might give it another chance to turn its fortunes around. µ


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