There's some interesting news coming out this evening from Motorola Solutions. It looks like the company is offering voluntary buyouts to hundreds of employees at its Schaumburg headquarters as they attempt to cut costs amid weak sales. The company has recently sent out buyouts to directors, managers and other senior-level employees, according to Crain's Chicago Business.
Motorola Solutions did not disclose how many buyouts it was targeting or whether it will resort to layoffs according to the report.The company did tell the Chicago Tribune the buyout packages are "part of an ongoing effort to regularly evaluate the workforce and make appropriate organizational adjustments where needed."
"We expect some employees will take advantage of the program," said a company spokesman. "But we can't predict the number, of course, as how many will be approved. With that said, it should be noted that we're still hiring in many areas, as well."
Remember that Motorola Solutions is not part of Motorola Mobility, any more. Google owns Motorola Mobility, you know the company that makes phones. Motorola Solutions was created in 2011, when Motorola was bought by Google. Except, Google only wanted the mobile side of their business. So the company divided up into Motorola Solutions and Motorola Mobility. Motorola Mobility is owned by Google right now. Motorola Solutions is expected to announce their Q3 earnings on October 23rd, and it's not expected to look all that great. On Thursday, their stock closed at $60.92 a share, which was 0.35% higher than it was on Wednesday.
It's sad to see that both Motorola Mobility and Motorola Solutions are struggling. Although I think Motorola Mobility is going to turn around very soon. While they did post some not so stellar earnings yesterday. But they literally just launched their new phones about a month ago, so it's still a bit to early to see.
It'll be interesting to see how many employees take this buyout from Motorola Solutions.