Motorola’s situation continues to get worse. Its cell phone division is encountering major problems, registering losses of over $840 million. Billionaire investor Carl Icahn has been demanding for more than a year that the mobile division be separated into a new company.

"The environment just isn't conducive to pursuing [the deal due to the] global economy and stressed financial markets, but we remain committed to that," explained co-CEO Greg Brown, adding that the economy’s present state does not allow such a move, which will be carried out, if everything gets back on track in good time, in 2010.

Fellow co-CEO Sanjay Jha will now have to guide its efforts on the development process of the company’s products. Jha already announced that at least four operating systems will no longer be used, in order to focus on the implementation of of Google’s Android OS. The company will also use Microsoft’s Windows Mobile for some of its devices, but the hopes of success are mainly connected to Android. The problem is that the timeline set by the Motorola’s officials reaches the next Christmas season, which means that the other companies will be able to release their products next year without fearing Moto’s competition. Apple and Research in Motion will surely come out with new devices and new offers, just as Nokia, LG Electronics and Samsung will do, winning more of Motorola’s market shares, which for the past 4 years has been struggling to find another massive market hit like its RAZR cell phone.

Even so, Sanjay Jha wanted to make it clear that they are all fine with the plan and aware of the implications of such a long term process. "The reality is, there is no quick fix here," Jha said. "The platforms we have chosen will be capable of delivering better performance and a better experience."

The company also plans to form a team in Seattle which will work closely with Microsoft, just as the team assembled in California is doing with Google’s engineers. "Windows Mobile 6 has not delivered the experience that I think Apple has been able to deliver, but as you look at the plan that is Windows Mobile 7 and even 6.5, I think there are significant new added features which will help the platform," Jha said. "We have now targeted new teams which are focused—in California and Seattle—to deliver experiences. That is where we have to differentiate." The ideea promoted by the new development process is that there has been too much focus on the design features and not enough on the user experience.

The restructuring moves announced by the company will save an estimated $600 million next year, according to the Motorola’s officials. What caused a general hype and anxiety among people inside the company and not only are the rumors about the thousands of layoffs which are extected to be associated with the restructuring process. So far, the job cuts have not been confirmed by Motorola.