News & Information for Technology Purchasers NewsFactor Sites:       NewsFactor.com     Enterprise Security Today     CRM Daily     Business Report     Sci-Tech Today  
   
Home Enterprise I.T. Cloud Computing Applications Hardware More Topics...
You are here: Home / Enterprise I.T. / Google Axes Another 10% at Motorola
DDoS Protection Powered By Verisign
Google Axes Another 10% at Motorola, Raising Doubts
Google Axes Another 10% at Motorola, Raising Doubts
By Jennifer LeClaire / NewsFactor Network Like this on Facebook Tweet this Link thison Linkedin Link this on Google Plus
PUBLISHED:
MARCH
08
2013

Google is paring down its recently acquired Motorola Mobility hardware division, selling off parts of the company and laying off staff. After axing 20 percent of Motorola's staff in 2012, the technology giant is whacking another 10 percent of its head count in 2013. About 1,200 employees will receive pink slips.

The Wall Street Journal first reported the layoffs, citing an internal memo. According to the Journal, Motorola staffers got the bad news in an e-mail this week that said, "while we're very optimistic about the new products in our pipeline, we still face challenges." The memo also noted, "our costs are too high, we're operating in markets where we're not competitive and we're losing money."

One more point from the Journal article: A Motorola spokesperson said the cuts are merely a continuation of the reductions Google announced last summer.

"It's obviously very hard for the employees concerned," the spokesperson said, "and we are committed to helping them through this difficult transition."

Losing Money

Can Google turn Motorola around and drive profitable product innovation or will it turn out to be a bust? Google acquired Motorola for $12.5 billion. But not much has happened since in terms of innovation.

Many have been waiting and watching for Google to get more specific about its Motorola agenda, particularly after it entered a deal to sell the Motorola Home business to Arris Group for $2.35 billion late last year. As part of its quarterly earnings report in January, Google hinted at its plans for Motorola.

"We're not in the business of losing money with Motorola," said Google CFO Patrick Pichette on the investors call. "We're 120 days into this journey, and we've inherited 12 to 18 months of product pipeline. With product restructuring, it does take time for new product to show up. Be ready for a lot of fluctuation in our P and L [profit and loss statements] over the next quarter. It's just the nature of the beast when you're reinventing a business."

Shutting Down Motorola?

Rob Enderle, principal analyst at the Enderle Group, told us this type of dwindling down was expected.

"The reality is when Google acquired Motorola they were primarily trying to acquire a patent portfolio," Enderle said. "Google wasn't really sure it wanted the rest of the company and they clearly didn't know how to manage it."

With the acquisition, some industry analysts expected Google to move through a process of shutting Motorola down rather than building up its product line. Enderle said Google "lacks the skill set -- and the interest -- to keep Motorola running as a hardware manufacturer."

"Google does everything from self-driving cars to alternative power," he said. "Actually building the devices wasn't something they seemed to ever really wanted to do."

Tell Us What You Think
Comment:

Name:

Like Us on FacebookFollow Us on Twitter
TOP STORIES NOW
MAY BE OF INTEREST
Salesforce.com is the market and technology leader in Software-as-a-Service. Its award-winning CRM solution helps 82,400 customers worldwide manage and share business information over the Internet. Experience CRM success. Click here for a FREE 30-day trial.
MORE IN ENTERPRISE I.T.
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
Are Government Spies Tipping Off Tor?
Less than a month ago, tech news headlines heralded a Tor Project breach. Now, some are saying that government spies are sharing information with Tor to help it prevent future breaches.
 
Backoff Malware Hits 1,000+ Businesses, Likely More
More than 1,000 businesses across the U.S. might have been affected by Backoff, a new kind of point-of-sale (PoS) malware, according to the Department of Homeland Security.
 
PlayStation Network Back Online After Attack
Sony’s PlayStation and Entertainment Network are back online after a distributed denial of service (DDoS) attack crashed the systems on Sunday. But Sony says no personal info was accessed.
 

Enterprise Hardware Spotlight
Alert: HP Recalls 5 Million Notebook AC Power Cords
HP is recalling about 5.6 million notebook computer AC power cords in the U.S. and another 446,700 in Canada because of possible overheating, which can pose a fire and burn hazard.
 
Acer's New Desktop Box Rides the Chrome OS Wave
Filling out its Chrome OS line, Acer is following the introduction of a larger Chromebook line earlier this month with a new tiny $180 desktop Chromebox and also a smaller Chromebook.
 
Feds OK $2.3 Billion IBM-Lenovo x86 Server Deal
IBM and Lenovo are celebrating U.S. approval of their x86-based server deal, having cleared some major security hurdles. The deal makes Lenovo a major player for enterprise data centers.
 

Mobile Technology Spotlight
Verizon Hops on the Voice-Over-LTE Bandwagon
Wireless provider Verizon is gearing up for a nationwide launch of its Voice-over-LTE service over the next several weeks, promising clearer and crisper phone calls and a Skype-like video service.
 
Smartphone 'Kill Switch' Law in California; Will Other States Follow?
California’s new law -- signed by Gov. Jerry Brown on Monday -- aimed at deterring cellphone theft could mean most mobile phones sold in the U.S. will soon include similar “kill-switch” tech.
 
Apple To Replace 'Small Percentage' of iPhone 5 Batteries
If you've noticed your iPhone 5 isn't acting right, it might be because of a bad battery -- and you might be eligible for a replacement. Apple is offering new batteries, though only for a small percentage of users.
 

Navigation
NewsFactor Network
Home/Top News | Enterprise I.T. | Cloud Computing | Applications | Hardware | Mobile Tech | Big Data | Communications
World Wide Web | Network Security | Data Storage | CRM Systems | Microsoft/Windows | Apple/Mac | Linux/Open Source | Personal Tech
Press Releases
NewsFactor Network Enterprise I.T. Sites
NewsFactor Technology News | Enterprise Security Today | CRM Daily

NewsFactor Business and Innovation Sites
Sci-Tech Today | NewsFactor Business Report

NewsFactor Services
FreeNewsFeed | Free Newsletters

About NewsFactor Network | How To Contact Us | Article Reprints | Careers @ NewsFactor | Services for PR Pros | Top Tech Wire | How To Advertise

Privacy Policy | Terms of Service
© Copyright 2000-2014 NewsFactor Network. All rights reserved. Article rating technology by Blogowogo. Member of Accuserve Ad Network.