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Motorola To Cut R&D Budget

By James Quintana Pearce - Tue 11 Sep 2007 07:07 AM PST

Motorola has been roundly criticized for its uninspired handset line-up since the Razr and a few quarters of losses, and in its bid to return to profitability it is aiming to cut its R&D budget by 15 percent by the end of this year, reports Telecom Asia quoting Reuters. Cutting the budget to the part of the company that is being relied upon to ignite marketshare growth and revenue may not seem to be a good thing no matter what the bottom line says, and Motorola is quick to say that it won’t harm the actual research and development that is done: “It’s not going to be about lower research and development...It can’t be. It’s got to be more efficient research and development spending.” Motorola is also trying to cut costs with job cuts and speeding up cash flow generation from product investment.

Posted in: Companies, Motorola, Gadgets



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