Motorola Cut 6% of its Workforce

January 15th, 2009 at 12:00 am
 


sad motorola

Motorola is going to lay off another 4,000 workers on top of the 3,000 that they announced last October. The new round of job cuts will affect about 6% of Motorola’s global work force.

"The actions we are taking today in our Mobile Devices business will allow us to further reduce our cost structure and positions us for improved financial performance in 2009," Sanjay Jha, co-chief executive officer of Motorola, said in a statement. "Together with these actions and the announcements made in the fourth quarter, the Mobile Devices business expects to recognize annual cost savings of approximately $1.2 billion in 2009."

This new cut is expected to generate $700 million in savings which will add the $800 million savings they have projected for 2009 as a result of the first restructuring. The total projected savings of $1.5 billion will be used to develop new smartphones which they are all hoping would turn around the company’s disappointing performance last year. "Additionally, we are making good progress in developing important new smart phones for 2009 and are pleased with the positive response from our customers to these new devices," Jha said.

Moreover, Motorola will also be focusing their attention on Android driven devices. When they announced the first round of lay offs they said that they were beefing up their Android development manpower. Ironically however, the latest phones they launched ran non-Android operating systems. One ran Motorola’s proprietary OS and the other was Windows Mobile. Although the smartphone they released looked promising, it’s unlikely that that would be their ticket out of the economic blunder they are currently in.

On the bright side, it only takes one amazing gadget to turn things around. Lucky for Motorola they’ve already experienced glory with the RAZR. Too bad they lost the recipe.