Motorola to cut 4000 employees as it focuses on high-end devices

Two-thirds of the staff reduction will be outside the US

Motorola Mobility is cutting 4000 employees as the company shifts its emphasis from feature phones to focus on high-end devices.

About two-thirds of the staff reduction is set to occur outside the US, the company said in a statement.

Motorola, which was acquired by Google in May, plans to close or to consolidate about one-third of its 90 facilities, as well as simplify its mobile product portfolio, making a shift from feature phones to more "innovative and profitable" devices, the company said.

Google had so far not discussed what it plans to do with Motorola, with some speculating that it bought the company primarily for its patents, and may not be interested in its mobile hardware business in a cut-throat market.

The Internet giant has however unveiled its own hardware products including the Nexus 7 tablet running the Android operating system at its recent I/O developers conference in San Francisco

While Motorola expects its new strategy to create new opportunities and help return its mobile devices unit to profitability, it understands how hard these changes will be for the employees concerned, Motorola said in its statement. The company is committed to helping the staff through the difficult transition and will be providing generous severance packages, as well as outplacement services to help them find new jobs, it added.

Motorola brought in US$1.25 billion in revenue in the quarter that ended June 30, about 10 percent of Google's total revenue. But Motorola also accounted for an operating loss of $233 million, which brought Google's total operating income down as a percent of its revenue by 6 percentage points.

Motorola plans to cut the number of devices the company makes from the 27 it introduced last year to just a few, Dennis Woodside, Motorola's new chief executive, told The New York Times. He plans to make products that are cool again, and include for example sensors that recognize who is in a room from their voices, cameras that take crisper photos, and batteries that last for days, according to the newspaper.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

John Ribeiro

IDG News Service
Show Comments

Cool Tech

Toys for Boys

Family Friendly

Stocking Stuffer

SmartLens - Clip on Phone Camera Lens Set of 3

Learn more >

Christmas Gift Guide

Click for more ›

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Aysha Strobbe

Microsoft Office 365/HP Spectre x360

Microsoft Office continues to make a student’s life that little bit easier by offering reliable, easy to use, time-saving functionality, while continuing to develop new features that further enhance what is already a formidable collection of applications

Michael Hargreaves

Microsoft Office 365/Dell XPS 15 2-in-1

I’d recommend a Dell XPS 15 2-in-1 and the new Windows 10 to anyone who needs to get serious work done (before you kick back on your couch with your favourite Netflix show.)

Maryellen Rose George

Brother PT-P750W

It’s useful for office tasks as well as pragmatic labelling of equipment and storage – just don’t get too excited and label everything in sight!

Cathy Giles

Brother MFC-L8900CDW

The Brother MFC-L8900CDW is an absolute stand out. I struggle to fault it.

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Featured Content

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?