Motorola is on the roll this time and it has got nothing to do with a brand new cell phone, rather an announcement about cut down in employee strength. The reason shouldn’t come off as a surprise and is simply being taken to save around $8oo million in expenses next year.
Surprisingly enough out of the extra expenses it plans to cut out, $600 million will be saved from the cell phone business alone. The effect is the number of employees cut short by 3,000; 2,000 of these are from the cell phone section. This would take over all layoffs in the last year to 13,000 if the rumor is confirmed as Motorola didn’t point out at such cut backs during their presentation.
[via Silicon Alley Insider]
This will not turn around Motorola. Executives are not prescient, and companies need market input to migrate successfully. Cutting new products and technologies is not going to provide the elements needed to success – good scenario planning, obsessive competitor understanding, willingness to be disruptive and using White Space to understand market needs. Motorola’s new plan misses most of the requirements. Read more at http://www.ThePhoenixPrinciple.com
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