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Ouch!

1:25 PM -- Yikes! staffing troubles are unlikely to be over for Motorola Inc. (NYSE: MOT) if predictions by analyst Richard Windsor at Nomura Securities hit their mark.

It's unlikely to be news to anyone that the analyst is predicting that the Chicagoland networking icon's second quarter results will "show further deterioration" and that "outlook is likely to be grim" for the future. Motorola has been struggling in the device business for months.

Mr. Windsor goes further, however, suggesting that the handset business could see more employees departing. "There are around 300 key positions at Mobile Devices and other vendors are looking to hire the right people," writes Windsor in a research note today. "We have already seen a number of mid-level defections."

Most of the attention so far has been focused on high-profile executives that left or where let go. Just last Thursday, Moto launched a lawsuit against Michael Fenger, its former senior vice president of mobile devices for Europe, the Middle East, and Africa.

It may be the center, however, that cannot hold, Windsor reckons: Apple, HTC and RIM are growing strongly in mobile phones and appear to be circling ready to snap up good, but disillusioned Motorolans. This will make it even harder for the company to recover even if it installs a great leader."

Ouch.

— Dan Jones, Site Editor, Unstrung

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