“On August 3, 2012, Motorola Mobility (Motorola), a wholly owned subsidiary of Google Inc. (Google), determined that it would reduce its headcount by approximately 4,000 out of a total of about 20,000 employees. Two-thirds of the reduction is set to occur outside of the U.S. In addition, Motorola plans to close or consolidate about one-third of its 90 facilities, as well as simplify its mobile product portfolio—shifting the emphasis from feature phones to more innovative and profitable devices.
These changes are designed to return Motorola’s mobile devices unit to profitability, after it lost money in fourteen of the last sixteen quarters. That said, investors should expect to see significant revenue variability for Motorola for several quarters. While lower expenses are likely to lag the immediate negative impact to revenue, Google sees these actions as a key step for Motorola to achieve sustainable profitability.”
“more innovative and profitable devices” sounds like more smart phones and tablets and other gadgets. They are moving from hard-wired computers to stored-programme computers with everything getting “smarter”. Amen. That’s a reasonable response to changes in the market unlike Nokia allowing itself to be absorbed by M$ without a fight. It could also be that M$’s “surface” will have a tough competitor besides Samsung. Good. Competition is good, good for consumers and in the long run good for competitors. Even M$ will have to work for a living from now on.