News.blog: Motorola reorganises phone business

Motorola has reportedly reorganised its struggling mobile phone business in anticipation of plans to spin it off into a separate publicly traded entity.

Although Motorola, at press time, had not yet put out a statement on the changes, they appear aimed at developing products more quickly in response to consumer demands, according to reports by Chicago Tribune, The Wall Street Journal, and Reuters.

Motorola has reportedly combined two categories of phones, mid/high-tier feature phones and multimedia phones, into a single segment, according to the Tribune. And among a group of executives named, Rob Shaddock, a senior vice president of mobile devices, was named head of consumer products, according to the Journal and Reuters. The Journal added that John Cipolla was promoted to senior vice president for mid- to high-tier products; Steve Lalla will oversee teams focused on mass-market phones; and Todd DeYoung "was given responsibility for ensuring the company's cell phones match its overarching strategy and are being directed at the right market".

Motorola has seen its handset market share plummet, mostly due to a lack of compelling new products. In January, amid pressure from activist investor Carl Icahn, the company said it would consider separating its handset business from the rest of the company in an effort to increase shareholder value and revive the struggling business. Late last month it officially announced the plan and has since announced a round of layoffs.