Motorola Inc said that no decisions had yet been made regarding a proposed major reorganization, news of which was reported in the Wall Street Journal yesterday. There have been a lot of scenarios discussed, but there has been no decision what, if anything, we’re going to do, Motorola told Reuters. According to the Journal, the plan is to merge six divisions at Motorola into two – consumer and industrial. Motorola is looking to cut costs, and last year cut a number of unprofitable businesses, exiting the dynamic RAM market (CI No 3,194), Macintosh compatibles (CI No 3,245) and consumer modems (CI No 3,303). As outlined by the Journal, the new scheme would see the merging of paging, cellular and two-way radio operations into the industrial group, and cellular handsets and pagers into the consumer group. As a whole, the affected units accounted for around 65% of Motorola’s $30bn revenues last year. The rest is accounted for by semiconductors, which looks likely to escape any reorganization.
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