Android Phones

Motorola will reportedly shed 4,000 jobs and focus on fewer smartphones

August 13, 2012 | by Natesh Sood


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After being unprofitable for 14 out of the last 16 quarters, Google executives have decided it is time for a major restructuring at Motorola Mobility.  Twenty percent of the workforce is scheduled to be laid off with one-third of those jobs coming in the United States.  In terms of specific numbers, 4,000 jobs will be lost and around 1,300 will occur in the United States.  In addition, a third of Motorola’s 94 global offices will be shut as the company tries to shed anything that is not absolutely essential.

It is no surprise Apple and Samsung lead in the smartphone category — a place where Motorola never really succeeded.  In order to become competitive, Motorola will adopt the HTC approach and focus solely on a few high-end devices per year.  Motorola is going to bet on a few hero devices, ones that contain innovative technology and software integration in order to appeal to the masses.

In 2011, Motorola introduced 27 new smartphones ranging from low-end to high-end devices.  I personally look forward to Motorola simply focusing on high-end devices, since that is what the majority of the consumers want to buy.  In terms of innovative technology, Dennis Woodside, Motorola Chief Executive, wants to implement new voice recognition technology, improved cameras, and “batteries that last for days.”  The Motorola Droid Razr Maxx is a great example of Motorola innovation: it took a shortcoming in the mobile world and fixed it.

I do not expect Motorola to launch a hero product tomorrow, but I would not be surprised if Motorola launches something truly amazing by the Holidays.  More importantly, perhaps Motorola needs to launch a fantastic device in a couple of months if it wishes to stay afloat.