Unconfirmed reports suggest that Motorola’s handset division is preparing to layoff as much as half of its entire workforce. An initial article by Phone Scoop has been picked up by numerous online publications in the last 24 hours, suggesting the US vendor is set to announce the cuts as early as this week. In addition, the Phone Scoop article claims that as part of its restructuring, Motorola will only launch 12 new handsets a year, with all smartphones running Google’s Android operating system. Motorola is also reported to have pulled out of exhibiting at the CTIA Wireless trade show this April. According to the Phone Scoop article, Motorola’s other divisions are not affected by the restructuring. Motorola has not commented on these developments, which remain purely speculative at this stage. 

Last month, the vendor disclosed with the SEC that it will cut an additional 400 jobs on top of the 1,500 already announced, and has previously stated an intention to focus smartphone development on both Google’s Android platform as well as Microsoft’s Windows Mobile operating system. In an effort to reduce costs, Motorola has frozen pay rises and has also been forced recently to postpone the planned spin-off of its mobile handset unit due to the global financial downturn.