Motorola to lay off 3,000 as part of $800M in cuts for '09

31.10.2008

, an analyst at in Cambridge, Mass., said the layoffs are necessary, even though they will obviously be hard on the individual workers. The layoffs also serve as an example of how highly qualified engineers are not immune to job disruptions.

"They have to do something at Motorola," she said. "They are losing market share, they are bleeding and they are inefficient. Job cuts happen when you are not making enough money to support the jobs."

The cuts are most directly designed to show shareholders that Motorola is taking steps toward profitability. If condition improve enough, "they are going to be able to hire people," Daley added.

Daley, who has visited engineers and labs run by Motorola for several years, said the engineering culture at Motorola has tended to be in favor of fostering "creativity and ingenuity," which isn't practical in difficult financial times like these, especially with a slew of new smart phones coming on the market from competitors.

"If you have creativity and ingenuity as such a core component, it can be a downfall," said Daley, who added that she was trained as an electrical engineer. "Motorola engineers were often off in their little silos saying things like, 'I found the coolest thing,' but what's the applicability of that? They really need to march like a band together" toward a common purpose or set of products.