Google (GOOG) is cutting 20% of Motorola Mobility's workforce, or over 4K employees. Google has...


Google (GOOG) is cutting 20% of Motorola Mobility's workforce, or over 4K employees. Google has already let go of 40% of Motorola's VPs and made a CEO change. The cuts are part of an effort to create a streamlined Motorola focused on a small number of smartphone and R&D projects. Reports have indicated Motorola's cable hardware unit will soon be on the block. Motorola had an operating loss of $38M in its first 6 weeks under Google control.

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Comments (16)
  • untrusting investor
    , contributor
    Comments (9903) | Send Message
     
    Is this the evidence of US economic recovery that markets & pundits are continually touting?
    13 Aug 2012, 02:32 AM Reply Like
  • Tack
    , contributor
    Comments (15968) | Send Message
     
    Oy.

     

    It's evidence that Google correctly surmises that Motorola cannot compete successfully in the hardware arena, as it's now unfolding. Extrapolating this to a proxy on global economics is either silliness or desperation in seeking to confirm a negative bias.
    13 Aug 2012, 09:53 AM Reply Like
  • gmmpa
    , contributor
    Comments (622) | Send Message
     
    I think we should let the Democrats and Republicans and the American voters work out how to fix the US economy. I do believe the Motorola purchase was a good move, however, Google should focus on profitability, shareholder value and return on investment. It is time for them to throw the stockholders a bone. While they are at it they should do the same to Google's corporate structure. In my opinion they employ a ton a smart employees that have returned very little to the bottom line. Firing a few may change their country club atmosphere.
    13 Aug 2012, 03:07 AM Reply Like
  • marilyn61
    , contributor
    Comments (173) | Send Message
     
    Motorola needed taking in hand before all was doom and gloom, so hopefully Google has now given the company a life-line. There doesn't at present appear to be any specific information out there about exactly what Google intends to do with Motorola but I suspect it will put to good use a lot of it's patents and patent applications. I wait with interest. ...........
    13 Aug 2012, 03:07 AM Reply Like
  • dividend_growth
    , contributor
    Comments (2895) | Send Message
     
    Google shows its ruthless side
    13 Aug 2012, 05:18 AM Reply Like
  • kmi
    , contributor
    Comments (4528) | Send Message
     
    Hopefully this doesn't hurt Motorola's traditionally strong sales of feature phones in emerging markets.
    13 Aug 2012, 06:27 AM Reply Like
  • dividend_growth
    , contributor
    Comments (2895) | Send Message
     
    There will be no feature phones in a few years, even in poorest EM markets.
    13 Aug 2012, 06:31 AM Reply Like
  • kmi
    , contributor
    Comments (4528) | Send Message
     
    I enjoyed reading this SA article which I felt was very well researched and written, and with which I agree heartily:

     

    http://seekingalpha.co...
    13 Aug 2012, 09:21 AM Reply Like
  • Martim Macedo
    , contributor
    Comments (9) | Send Message
     
    Bad news for Samsung?
    13 Aug 2012, 06:40 AM Reply Like
  • kmi
    , contributor
    Comments (4528) | Send Message
     
    No, because some SE Asian markets still favor feature phones, which means if Moto refocuses entirely on smartphones, like Sony, that segment goes to Samsung/Nokia/Huawei and others who continue marketing to it.

     

    I've used the low price cut rate Huawei and Samsung Android products marketed there and they are terrible by comparison to the feature phone products. Also, there are very few dual-sim smartphone products, I believe zero WindowPhone and iOS dual sim and 1 ior 2 dual sim Android devices total.

     

    Motorola and Samsung make the better dual sim products, if Motorola pulls out of the dual sim market that goes to Samsung.
    13 Aug 2012, 09:27 AM Reply Like
  • Bret Jensen
    , contributor
    Comments (12747) | Send Message
     
    So much "Do No Evil" as a company mottto. Wasnt Schmidt a huge Obama supporter? Guarantee MSM does not pick up on that
    13 Aug 2012, 07:13 AM Reply Like
  • kmi
    , contributor
    Comments (4528) | Send Message
     
    'Evil' is subjective and entirely up to the viewing angle.

     

    What is the greater evil, firing some personnel today or bearing the good of the entire company and its future and all the employment that implies in mind?

     

    This comment seems intended to generate emotional negativity but has little value.
    13 Aug 2012, 09:30 AM Reply Like
  • Moon Kil Woong
    , contributor
    Comments (12678) | Send Message
     
    MOT was probably bought due to their patents much like Palm was bought by HP for the same thing. That's certainly bad for the employees. As for Android, Samsung is really the lead on making nice hardware for it. I think Samsung is doing just fine.
    13 Aug 2012, 10:37 AM Reply Like
  • Whitehawk
    , contributor
    Comments (3121) | Send Message
     
    HP has made little productive use of Palm patents and I gather they lost a considerable amount of money from the acquisition. This is not uncommon, I have seen similar lack-of-creative destructions in acquisitions from other large techs with wads of cash, such as Intel and Cisco.
    13 Aug 2012, 12:49 PM Reply Like
  • kmi
    , contributor
    Comments (4528) | Send Message
     
    Palm/WebOS was a mismanagement of magnificent proportion.

     

    HP seems to constantly bungle intelligent acquisitions and strategies that any other mildly competent entity wouldn't.

     

    The original vision of 'WebOS everywhere' that led HP to buy Palm has now been taken over by Google which is using a weaker product to do it with.
    13 Aug 2012, 08:04 PM Reply Like
  • PJS
    , contributor
    Comments (162) | Send Message
     
    In hindsight, Google blew big money worse with Motorola than HP did with Palm. Of course, now they both say they were only after the patents.

     

    Lenovo is a much smarter cat than either.
    18 Mar 2014, 05:18 PM Reply Like
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