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Motorola Shutting Down South Korea Operations in 2013

By - Source: The Next Web | B 9 comments

Five hundred workers set to join 4000 international employees being made redundant.

Google-owned Motorola has confirmed the smartphone maker will close its South Korean operations in the new year. The decision is part of a continuous global restructuring move by parent company Google, which purchased the firm for $12.5 billion last year. Consequently, Motorola Mobility will cut 500 jobs in the process, with those losing their jobs receiving compensatory redundancy packages.

"On December 10, we began communicating to staff in Korea our plans to close most of our operations in Korea, including our research and development and consumer mobile device marketing organization," it said. "The changes in Korea reflect our plans to consolidate our global research and development efforts to foster collaboration, and to focus more attention on markets where we are best positioned to compete effectively."

It also stressed that it was a "difficult but necessary decision," as well as the fact that its home business and iDEN (Integrated Digital Enhanced Network) market operations will continue to operate within the region.

Motorola has already made 4,000 employees outside of the U.S. redundant, with a third of its 90 offices around the globe closed. Google also recently shut all of its international websites. Google's main reason for acquiring the firm was to obtain access to Moto's portfolio of 17,000 patents. This contributed to, for the first time since its inception, the company's spending more on patents than on R&D of new products. However, the price will soon be challenged in court. Google may discover it paid too much for the patents or snagged a bargain, with a court set to decide the how much they're actually worth.

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  • 3 Hide
    zorky9 , December 11, 2012 3:47 PM
    See what you did Psy?!
  • 0 Hide
    Gundam288 , December 11, 2012 4:45 PM
    zorky9See what you did Psy?!

    It wasn't Psy, more like it was bad management from Sanjay Jha (Motorola Mobility's former CEO).

    Jha really didn't think a lot of things out and make some poor choices. Then to top it off he sold the company to google after the split ASAP because of those poor management choices and walked away with a $64.3 million "golden parachute".

    http://articles.chicagotribune.com/2012-05-26/business/ct-biz-0527-moto-payday--20120526_1_higher-than-normal-stock-awards-equity-awards-golden-parachute
  • 0 Hide
    f-14 , December 11, 2012 4:48 PM
    motorola has been poised for take over since they let nextel collapse.

    i just figured intel was going to snap them up and apple or qualcomm if intel didn't.

    was a nice surprise to see google get into the smart phone market and then pull this hood wink over on every one else.
  • -6 Hide
    spookyman , December 11, 2012 4:49 PM
    Hmm must be moving to China for that famous Child Slavery workers to save a few pennies.
  • 0 Hide
    geost91gr , December 11, 2012 5:00 PM
    If the guys at Samsung have any sense of patriotism, they won't like this...
  • 0 Hide
    Kami3k , December 11, 2012 5:34 PM
    geost91grIf the guys at Samsung have any sense of patriotism, they won't like this...



    Why?
  • -1 Hide
    geost91gr , December 11, 2012 6:05 PM
    Kami3kWhy?


    Well, Google taking away R&D units from South Korea can't look good to South Korean Samsung.
  • 0 Hide
    ehanger , December 11, 2012 9:30 PM
    Don't be evil google!
  • 0 Hide
    blubbey , December 12, 2012 9:51 AM
    geost91grIf the guys at Samsung have any sense of patriotism, they won't like this...

    Why the hell would patriotism come into it?