So here's a stupid plan. Buy a mobile company then months later fire thousands of people from said mobile company. Well that's precisely what Google did. After spending millions on Motorola Mobility earlier this year, Google announced today that it will be letting go of 4,000 employees from the struggling smartphone and tablet maker. The same struggling company that was at one point the cream of the crop mobile phones is now suffering the same way that many other mobile phone makers have been in the last few years. Motorola will also close about a third of it's 90 facilities around the world.
Motorola tried to recover by adopting Google's Android software for its smartphones early on but its handset division has lost money in 14 of the past 16 quarters. Honestly, when is the last time you bought a Motorola product or seen a competitive model in the stores? This large layoff is apparently part of that corporate plan commonly referred to as "reorganization." Translation: Things aren't going well so we're going to fire a bunch of people and try to fix it.
So ... What's The Plan?
After kicking up the unemployment rate a bit, Motorola plans to build high-end phones with sensors to detect people's entry into rooms, longer-lived batteries and higher-quality cameras. It also appears that the company will try to retool and "retrench" in the U.S. market, and will stop competing in unprofitable markets, especially where iPhone reigns supreme.
Will it work? Possibly? Currently the graveyard of failed mobile companies is starting to fill up so if Motorola is looking to take that one foot out, then they'll have to do something spectacular or go a completely different direction.