Motorola Solutions to cut costs by buying out North American managers

Motorola Solutions to cut costs by buying out North American managers
Another quarterly report has come, and once again Motorola is proving to be a burden on Google's bottom line. The hardware division continues to lose money despite having finally put out a new line of devices with the new DROIDs and the Moto X, and reports are saying that the last vestiges of Motorola Inc. aren't doing so well either. A new report says that Motorola Solutions is planning to cut costs by buying out managers.

Motorola Solutions is the last independent piece of what had been Motorola Inc. It was split off of Motorola in 2011 and has been attempting to cut $50 million per year by cutting back on manufacturing and employee costs. Now it is looking to cut more money off the books by offering buyouts to a few hundred managers across North America. Motorola Solutions has about 4,000 managers eligible for buyouts, but the report says that only a fraction of that number will be offered buyouts. 

The word about the cuts comes on the heels of recent reports that Motorola Solutions may look into selling its wireless local area network business as well. This would leave the company with just its device market, which is based in building mobile devices like radios for enterprise. 

source: WSJ

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13 Comments

1. PapaSmurf

Posts: 10457; Member since: May 14, 2012

This is depressing since I love Moto. :(

2. joey_sfb

Posts: 6794; Member since: Mar 29, 2012

How can you do no evil when profit is on the line?

9. Penywyz

Posts: 255; Member since: Aug 13, 2013

Me too Papa Smurf, I love my Moto too. :(

3. Finalflash

Posts: 4063; Member since: Jul 23, 2013

This is expected and likely was going to happen at some point. Google bought Moto largely for the patents and will have to cull the unnecessary parts now to make it profitable. They have done their best so far in terms of not stepping on too many toes but there is a limit. Unfortunately they paid a lot for this company and likely want to make some of it back. Although they should have looked into the trojan mole method of cheap buyouts and then maybe they would have saved enough to keep Moto more intact.

4. Jimstar

Posts: 259; Member since: Oct 24, 2011

you're thinking of Motorola mobility, Motorola solutions is a different company. So this has got nothing to do with google, despite that first paragraph in the article

5. androiphone20

Posts: 1654; Member since: Jul 10, 2013

motorola is google's surface

7. OldNorseBruin

Posts: 235; Member since: Mar 12, 2013

MOTOROLA MOBILITY had a great chance to WOW the mobile world this year BUT put out 3 phones with less than TOP-OF-THE- LINE specs, while definitely charging TOP-OF-THE-LINE prices...Incredible Disappointment! All of the current well-deserved anticipation for the coming NEXUS 5 ( because of its TOP-OF-THE-LINE specs @ a MID-RANGE Price ) should have been about the XPHONE, BUT as we know THAT Xphone was a huge disappointment. If this soon-to-appear NEXUS 5 had been a MOTOROLA NEXUS 5 ( with these specs & prices ) , instead of a LG NEXUS 5, MOTOROLA Mobility would have had a terrific New Start under GOOGLE ownership. But alas...

8. itzmando

Posts: 119; Member since: Oct 17, 2011

I don't see Moto Mobility pushing out less than what we expect in specs. Sadly too many users on this site care so much about specs, specs, specs. But from the reviews regarding the Moto X and the Droid trio the USER experience is something that has seen much improvement, although it may not be the latest hardware those phones work well enough to give the customer a great experience now. So many Android OEMs are beginning to lose touch with listening to customer complaints on the most basic of functions a phone should do, specs are not everything. I left that bandwagon when I bought my GNexus, phone worked well but built poorly internally left much to be desired which should not be that way. So much bloatware for Samsung, LG, Sony, and HTC don't help with experience, and features/gestures are nice too but they shouldn't go over board. Moto is still in transition from ending up on the bottom, but climbing its way back up to the top. It will take time before Moto stabilizes, and eventually will be given the chance to produce a Nexus device.

10. Penywyz

Posts: 255; Member since: Aug 13, 2013

Couldn't have said it better myself. +1 sir

11. FCB-Eto

Posts: 64; Member since: Aug 17, 2013

Sony doesn't have bloatware and the built in Sony apps can be disabled, actually the only Ui's i like are Sony's ,Moto's and Htc the new sense is refined and light. Moto's woes are the face that there phones are exclusive to the USA and then the droid line exclusive to Verizon. Just like the Americans think Sony needs them to be relevant on the android platform and to be seen as a top contender the rest of the world thinks Moto needs to stop with this exclusive to the USA only crap.

12. itzmando

Posts: 119; Member since: Oct 17, 2011

I totally agree with your opinion in Moto not offering its devices outside of the USA. As much as I like Sony but I don't like anything they have out using Android with their UI that really gives a customer a happy experience. HTCs are great but since I've had stock android since 09 with the orig. droid, all these UI overlays create lag, lose basic functionality over appearance. If OEMs can balance style, with performance and USER experience that is a win. It seems too much is software based with many gestures or features to sell a phone. I understand its a business and the market is packed with competition, but I want a happy experience not deal with problems. I was dead set on a Note 3 on VZW, but seems the Sprint and VZW versions are having call quality issues, Moto X had some software issues that have later been fixed to improve user experience. HTCs are limiting hardware at the cost of design, yet too overpriced and their UI like other OEMs use too many of the phone's resources slowing it down.

13. Larry_ThaGr81

Posts: 592; Member since: May 26, 2011

It all went down hill with the introduction of the locked bootloaders and the increased competition. If it wasn't for the patents, I don't believe Google would have bought Motorola.

14. Larry_ThaGr81

Posts: 592; Member since: May 26, 2011

When you choose to only listen to a fraction of what your customers are asking for you end up keeping that fraction of your customer base, but you lose the rest of them. Until Motorola and HTC understands that they will continue to struggle.

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