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Motorola Deals With Tough Times

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Skies have been cloudy lately for cellular phone maker Motorola. After ceding its number 2 mobile phone manufacturer global ranking to Samsung last year, Motorola has recently announced the postponement of some of its projects, and that it would apportion the size of its research laboratories to roughly 300, while transferring a number of people to other units.


The move came as a result of the company’s massive market share losses, which also prompted it to spin off its cell phone business in 2009. To cushion the effect of this cost-reduction on Motorola’s 66,000-strong workforce, opportunities for eligible employees in other parts of the company are being eyed. Aside from its mobile phone business, Motorola also has a network equipment and set-top boxes unit and government and public safety business concerns.

The company’s loss-making trend in the mobile phone market has been partly attributed to the sharp criticism of its handset designs and its failure to introduce a strong follow-up to its famed Razr phone series.

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