Motorola Mobility Sees Additional Layoffs Under Google Ownership

By

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
Get stories like this delivered straight to your inbox. [Free eNews Subscription]

TechZone360 Contributor

SHARE THIS ARTICLE
Related Articles

ChatGPT Isn't Really AI: Here's Why

By: Contributing Writer    4/17/2024

ChatGPT is the biggest talking point in the world of AI, but is it actually artificial intelligence? Click here to find out the truth behind ChatGPT.

Read More

Revolutionizing Home Energy Management: The Partnership of Hub Controls and Four Square/TRE

By: Reece Loftus    4/16/2024

Through a recently announced partnership with manufacturer Four Square/TRE, Hub Controls is set to redefine the landscape of home energy management in…

Read More

4 Benefits of Time Tracking Software for Small Businesses

By: Contributing Writer    4/16/2024

Time tracking is invaluable for every business's success. It ensures teams and time are well managed. While you can do manual time tracking, it's time…

Read More

How the Terraform Registry Helps DevOps Teams Increase Efficiency

By: Contributing Writer    4/16/2024

A key component to HashiCorp's Terraform infrastructure-as-code (IaC) ecosystem, the Terraform Registry made it to the news in late 2023 when changes …

Read More

Nightmares, No More: New CanineAlert Device for Service Dogs Helps Reduce PTSD for Owners, Particularly Veterans

By: Alex Passett    4/11/2024

Canine Companions, a nonprofit organization that transforms the lives of veterans (and others) suffering PTSD with vigilant service dogs, has debuted …

Read More