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

Congress Passes Consumer Privacy Rollback

By: Paula Bernier    3/29/2017

Yesterday, the House of Representatives voted 215-205 to eliminate privacy rules aimed at protecting the browsing histories and data of U.S. broadband…

Read More

How Enhanced Connectivity Benefits Analytics and Big Data

By: Lindsey Patterson    3/29/2017

Potential benefits of data analysis include enhanced marketing potential, the ability to improve overall efficiency as well as the means to track and …

Read More

Think IT Can Handle Security On Its Own? Think Again

By: Special Guest    3/28/2017

One of the major fears of any IT department is losing control - of projects, of users, of applications. Yet, even with the best technology solutions, …

Read More

Optane: Intel Builds a Supercharger for PCs

By: Rob Enderle    3/28/2017

Optane is Intel's brand name for 3D XPoint memory, a brand-new memory architecture which has speed a bit slower than DRAM but otherwise performs like …

Read More

IBM's Cloud/Data/AI Trinity Vision

By: Doug Mohney    3/27/2017

If you want to know what the future of IT looks like, it's always good to look to IBM. The company pioneered and championed PCs, the Internet, open so…

Read More