Motorola to downsize by 20%, renews focus on phones

Motorola Mobility is cutting its workforce by 20% (around 4,000 people) and will close a third of its 94 offices worldwide, as it seeks to regroup and tighten its focus on selling high-end phones in the US, according to reports in the New York Times.

A Motorola representative told the paper that the majority (two-thirds) of the job losses will occur outside the US. The company is however committed to maintaining hubs in California, Chicago and Beijing.

The newly-slimmed Motorola is expected to have a renewed focus on building high-end mobile phones as it seeks to win back some of the market share it has lost here to Apple.

As part of this mission, it is expected to cut the number of models it offers and build in better batteries, sharper screens and clever new sensors.

No word is given in the reports of what Motorola’s plans are for its set-top box business, or indeed the television industry in general.

Motorola Mobility was acquired by Google last May for US$ 12.5bn – ostensibly for its patent portfolio, although the vendor’s close relationships with leading operators also likely played a part in the decision.

Google revealed within its financial results for the second quarter of this year that Motorola Mobility posted an operating loss of US$ 233mn for the period on sales of US$ 1.25bn, with most of these losses coming from its mobile devices business.

Via New York Times

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