Top-heavy with divisions that make everything from semiconductors to two-way radios, Motorola is reportedly preparing a restructuring that could merge its half-dozen business units into two segments: one for consumer-oriented products, and one for industrial customers.
The Wall Street Journal, citing unidentified sources, reports today that Motorola intends to combine the operations that build infrastructure products for paging, two-way radio, and cellular telephones. The Schaumburg, Illinois, company will also create a separate division for sales of consumer devices such as cellular-telephone handsets and pagers, the newspaper reported.
Motorola currently operates cellular, paging, and two-way radio units separately, each with its own infrastructure and technology development and sales forces.
The changes could affect thousands of people among Motorola's 140,000 employees worldwide.
The company's big semiconductor operation, which was revamped last year, was expected to remain separate, as would the much smaller automotive and space groups.
"There have been a lot of scenarios discussed, but there has been no decision what, if anything, we're going to do," a Motorola spokeswoman said.
Motorola's stock was up on the report.
In a statement, Motorola said its reshaping and cost-cutting activities are ongoing, but a reorganization of its businesses would be a separate activity. Last year, for example, the company exited non-performing businesses, such as DRAM semiconductors and consumer modems, and the company continues to evaluate its units.
"That review has not necessarily ended," the spokeswoman said.
