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Google-owned Motorola Mobility Cuts 20 Percent of Staff

By - Source: New York Times | B 20 comments

Motorola Mobility is trimming the fat to lighten the load for the road ahead.

Google's purchase of Motorola just went through in May of this year. The search giant announced plans to purchase Motorola in August of 2011, but things weren't all stitched up until late May. Now, nearly a year on, it looks like there's some reorganizing going on at Motorola. The New York Times reports that Motorola yesterday told employees that it would be laying off 20 percent of staff.

The cuts will see a total of four thousand jobs eliminated, with one third of those layoffs affecting U.S. employees, though it's not yet clear which divisions will be affected the most. Additionally, 40 percent of the company's VPs will get pink slips. Operations in Asia and India, and center research and development in Chicago, Sunnyvale and Beijing will be reduced.

Speaking to NYT, Dennis Woodside, Motorola’s new chief executive, said that he plans to cut the number of handsets Motorola is churning out each year. Last year the company released 27 phones. Woodside is hoping to cut that number down and load the remaining handful of high quality devices.

The company isn't just saying goodbye to staff with this reorganization. Motorola Mobility will also shutter a third of its 94 offices worldwide and the company is cutting suppliers and reducing component purchases by as much as 50 percent.

Google confirmed its $12.5 billion purchase of Motorola Mobility back in May. The company now not only owns its own cell phone company but also Motorola's huge patent portfolio.

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  • 5 Hide
    dalethepcman , August 13, 2012 8:05 PM
    There really is no need to release 27 different handsets a year. Obviously they would need to cut back on suppliers. I feel bad that so many people are loosing their jobs, but its to be expected when any company is purchased. 40% of their VP's getting the axe is kind of surprising, but I think most of those VP's being let go were overseeing the plants that are being closed.
  • 3 Hide
    eddieroolz , August 13, 2012 8:05 PM
    Times are tough for Motorola - without the backing of Google, who knows what Motorola would have faced. Just another proof how Samsung is the only winner in the Android camp here.
  • 3 Hide
    freggo , August 13, 2012 8:45 PM
    "27 different handsets"... no wonder they can't make a profit.

  • 9 Hide
    back_by_demand , August 13, 2012 8:47 PM
    Glad to hear that 40% of the VPs will get trimmed, they are the real fat in an organisation, rather than just targetting the plebs at the bottom all the time.
  • 5 Hide
    back_by_demand , August 13, 2012 8:50 PM
    eddieroolzTimes are tough for Motorola - without the backing of Google, who knows what Motorola would have faced. Just another proof how Samsung is the only winner in the Android camp here.

    Samsungs strength is its diversification, hell if Motorola made laptops, TVs, blurays, fridges, washing machines, parts for Apple products
    ...
    And when I say diversification, 27 handsets is not diversifying, that is cannibalising your own sales
  • 0 Hide
    jabliese , August 13, 2012 8:55 PM
    Hope they were all from the bloatware department.
  • 1 Hide
    Gundam288 , August 13, 2012 8:58 PM
    eddieroolzTimes are tough for Motorola - without the backing of Google, who knows what Motorola would have faced. Just another proof how Samsung is the only winner in the Android camp here.

    Motorola was spinning off the phones regardless as they were a drain on company for a while. before the droid many of their other phones didn't really "catch on" with people other than the 1st RAZR.

    http://en.wikipedia.org/wiki/Motorola_Razr
  • 2 Hide
    alidan , August 13, 2012 9:06 PM
    27 phones

    wtf motorola?

    1 low end phone that is just a phone. cheap for people to use as an emergency
    1 low end but very durable phone, again cheapish but for people who may damage the phone through normal use (construction site and such)
    1 low end social phone. able to get onto facebook and such, check email, and so forth, but you arent playing angry birds
    1 higher end social phone directed at businesses and such, mostly just email on the go for employes.
    1 low end android phone, for budget and possibly pay as you go plans
    1 mid range android for budget and possibly pay as you go
    and at most 5 high end phones.
    1 consumer, everything they want and more
    1 business, a step up from just the email phone
    1 heavy duty, able to fall a significant distance with some assurance it wont be damaged
    1 heavy use phone, thicker to accommodation a longer battery life
    and one balls out its got everything, durability, battery life, but doesn't look "pretty" like an iphone, its meant to be functional.

    only the 5 high end phones need upgrades on a yearly or an every other year basis,
    the low end phones don't need updates aside from shrinking of parts and better batteries when appropriate.

    the mid phone will be replaced with the consumer grade phone when that cycles out.

    id also say that beyond phones, there is room for one android device to be like the ipod touch, but android.
  • 0 Hide
    jojesa , August 13, 2012 11:07 PM
    It could have been worse if Google had not prurchased Motorola. They could have gone bankrupt and then everybody have lose their jobs.
  • 0 Hide
    southernshark , August 13, 2012 11:10 PM
    Didn't see that coming did ya?
  • -1 Hide
    Kami3k , August 14, 2012 1:09 AM
    john_4Wow if only the leftist hacks in DC could only do this to the FED instead of trying to spend us into default.


    Lol there's like one actual leftist in DC.

    Go back to Fox News.
  • -1 Hide
    nebun , August 14, 2012 3:34 AM
    ...and here starts the downfall of GOOGLE...
  • 0 Hide
    old_newbie , August 14, 2012 5:47 AM
    Noooo! Dont cut Motorola people until they push the ICS update across the whole smartphone line!
  • 3 Hide
    bin1127 , August 14, 2012 6:03 AM
    nebun...and here starts the downfall of GOOGLE...


    but the article is about google expanding their business. they are trimming moto, not google.
  • -3 Hide
    nebun , August 14, 2012 6:53 AM
    bin1127but the article is about google expanding their business. they are trimming moto, not google.

    lol...you are so very gullible, lol
  • 0 Hide
    jojesa , August 14, 2012 2:51 PM
    nebun...and here starts the downfall of GOOGLE...

    Kids stay in school, learn to read or you will make comments like this one above ^
  • 0 Hide
    Camikazi , August 14, 2012 3:01 PM
    nebunlol...you are so very gullible, lol

    You do realize that without backing up your comments and just making small stupid statements no one will ever believe you and just write you off as a dimwit right? If you think they are wrong then state why don't just say "your wrong lol" (incorrect spelling done on purpose) and leave it as that, it just makes you look bad.
  • 0 Hide
    10tacle , August 14, 2012 7:01 PM
    Kami3kLol there's like one actual leftist in DC. Go back to Fox News.



    So what are you saying, there are no Democrats in Washington or something and they are not responsible for not passing a budget in over 3 years in the Senate? Go back to MSNBC and CNN.
  • 0 Hide
    nebun , August 14, 2012 7:34 PM
    CamikaziYou do realize that without backing up your comments and just making small stupid statements no one will ever believe you and just write you off as a dimwit right? If you think they are wrong then state why don't just say "your wrong lol" (incorrect spelling done on purpose) and leave it as that, it just makes you look bad.

    really now?...if google is doing so well then why send people on their way?...dude, google's time has come, watch and see...all the google sheep will cry when their stock will be worthless...yahoo will become number 1....
  • 0 Hide
    Camikazi , August 19, 2012 11:12 PM
    Quote:
    really now?...if google is doing so well then why send people on their way?...dude, google's time has come, watch and see...all the google sheep will cry when their stock will be worthless...yahoo will become number 1....

    You've never paid attention when 2 companies merge have you? There is always restructuring done by the primary company to fit their way of working and that usually means laying off the unneeded people. It is just how it works, you need to remember that the company being bought was in trouble for a reason and their work structure is usually a big part of it.