Google-owned Motorola Mobility Cuts 20 Percent of Staff

News
By Jane McEntegart
published

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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20 Comments Comment from the forums
  • dalethepcman
    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.
    Reply
  • eddieroolz
    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.
    Reply
  • freggo
    "27 different handsets"... no wonder they can't make a profit.

    Reply
  • back_by_demand
    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.
    Reply
  • back_by_demand
    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
    Reply
  • jabliese
    Hope they were all from the bloatware department.
    Reply
  • Gundam288
    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
    Reply
  • alidan
    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.
    Reply
  • jojesa
    It could have been worse if Google had not prurchased Motorola. They could have gone bankrupt and then everybody have lose their jobs.
    Reply
  • southernshark
    Didn't see that coming did ya?
    Reply