More predicted layoffs at Motorola Mobility are taking place under the new ownership by Google.
The company is expected to layoff some 1,200 employees working in the United States, China and India, news reports said. That amount represents about 10 percent of its current employees
The news came from a company e-mail handed over to The Journal that
said in part, "while we're very optimistic about the new products in our pipeline, we still face challenges. … our costs are too high, we're operating in markets where we're not competitive and we're losing money."
These layoffs are in addition to a 20 percent cut in Motorola’s employee count which began in August, The Journal claims. It had as a goal to lay off some 4,000 employees as of last year. Motorola had 11,113 employees as of December.
"These cuts are a continuation of the reductions we announced last summer,” a Motorola statement said. “It's obviously very hard for the employees concerned, and we are committed to helping them through this difficult transition."
News about fewer jobs at the company comes at the same time that nationally, the U.S. economy added 236,000 jobs in February, and the unemployment rate dropped to 7.7 percent – a four-year low.
Google purchased Motorola Mobility for $12.5 billion largely for its rich patent portfolio. But more recently, The Journal is reporting that “Google executives have referred to Motorola as an insurance policy in case Google loses control of Android to Samsung, which has commanded a growing share of the Android-based device market.”
However, Motorola has seen operating losses in recent months.
In October, Google also warned that Motorola Mobility could see “significant” restructuring charges, according to TechZone360. “Motorola continues to evaluate its plans and further restructuring actions may occur, which may cause Google to incur additional restructuring charges, some of which may be significant,” a Google filing with the Securities and Exchange Commission in October added about Motorola.
Motorola Mobility manufactures cell phones and cable set-top boxes.
Mergers and acquisitions are the norm in business. However, it's not every day that two major cloud communications players with highly complementary o…
I was at a VR event this week, and I'm sure the speaker misspoke when he said that one of the benefits of VR is the ability to meet yourself. But the …
More than 200,000 computers in more than 150 countries were crippled by a massive ransomware attack, dubbed WannaCry, and security experts warned that…
Another broadband satellite cloud network moved closer to reality this month, with LeoSat securing an investment from SKY Perfect JSAT (SJC) Corporati…
The Infoblox Intelligence Unit observed two global malware outbreaks on Friday, May 12. Although there is no indication that the two attacks were rela…