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Motorola trims mobile offerings

by Shaun Nichols

31 Oct 2008

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Motorola has had to delay a planned spin-off of its handset operation

Motorola is looking to reduce its wireless software offerings amid sagging sales.

The company said that it would be cutting down the number of wireless platforms it offers on its handsets, leaving only Google's Android and Microsoft's Windows Mobile for smartphones and the P2K system for conventional mobiles.

News of the consolidation comes in the wake of Motorola's revelation that the company had lost some $397m over the last financial quarter. As a result, Motorola is planning to cut some 3,000 jobs in the coming months.

The move will also delay Motorola's earlier plans. The company said that its Android handset will not arrive until the 2009 holiday season, while the planned spin-off of its handset operation will also be put back in order to accommodate the restructure.

"While our strategic intent to separate the company remains intact, we are no longer targeting the third quarter of 2009, primarily due to the macro-economic environment, stresses in the financial markets and the changes underway in mobile devices," said co-chief executive Sanjay Jha.

"We have made progress on various elements of the separation plan and will continue to prepare for a potential transaction at the appropriate timeframe that serves the best interests of the company and its shareholders."

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