In the wake of the Google Acquisition Motorola is scaling back on the development and production of new products, deciding to focus on a few good phones instead of releasing incremental updated products. They will also be scaling back on the work force. Motorola will cut 20% of its employees (4,000) one third of those are coming from US operations. They will be producing less cheap phones. CEO Dennis Woodside told the Times that Motorola is looking to re-invigorate the brand with inovations like voice recognition that determines who is in a room, better camera tech, and longer lasting batteries.
Google’s 8-k filling states that the changes were required to sustain profitability. They had previously lost money in 14 of the last 16 quarters.