Motorola Mobility Sees Additional Layoffs Under Google Ownership

By Ed Silverstein March 08, 2013

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.




Edited by Brooke Neuman

TechZone360 Contributor

SHARE THIS ARTICLE
Related Articles

How to Buy a Laptop in 2016: Oh the Choices...

By: Rob Enderle    8/29/2016

Currently people are replacing their laptop computers about once every five years, and for those reaching that five-year due date, the next couple of …

Read More

Wearable Camera Market Climbs to New Heights

By: Alicia Young    8/29/2016

Wearable cameras are becoming increasingly popular thanks to thrill-seekers. After all, it's much easier to record yourself skydiving or mountain clim…

Read More

Ford's Autonomous Car Plan Implies We're Idiots

By: Rob Enderle    8/29/2016

According to CrashStats, about 18 percent of injury crashes, and 16 percent of all police reported crashes were caused largely because we weren't actu…

Read More

Apple Goes Social with Video Editing App

By: Alicia Young    8/26/2016

The goal is to offer simple video editing with tools that appeal to millennials and upcoming generations-the people who grew up surrounded by social m…

Read More

How Do the Year's Threat Predictions Match Reality?

By: Special Guest    8/24/2016

Last year, Fortinet's FortiGuard Labs global threat research team made a series of predictions about cyber threats in 2016. We are now halfway through…

Read More