September 27, 2016 12:29:48 pm
Lenovo has announced further jobs cuts in Motorola’s Moto smartphone business and in a statement said this will affect “less than 2 percent” of its 55,000 employees globally. Lenovo confirmed the job cuts will take place in Motorola’s mobile phone division, although it didn’t give a number on how many people will lose their jobs.
Droid-Life was the first to report about this, and said nearly 50 per cent of the 1200 jobs at Motorola’s mobile phone division could be cut. Droid-Life quoted a source for the report, but Lenovo has not given a number confirming this.
In a press statement issued later on, Lenovo said the job cuts were part of the reorganisation efforts between Lenovo and Motorola as it tries to streamline product portfolio in the smartphone segment. Lenovo cut over 3000 jobs last year in October.
Lenovo acquired Motorola Mobility business from Google in January 2014. The deal gave Lenovo control of Motorola’s smartphone business and Lenovo paid close to $2.91 billion for the company. This was much lower than the nearly $12.5 billion Google paid when it has acquired Motorola in 2011.
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With the deal, Lenovo had hoped to boost its presence in North America and Latin America and Western Europe, where Motorola remains one of the more well-known and stronger brands in the smartphone business. This year Motorola’s ads mocked the iPhone 7 and Samsung Galaxy S7 series as they launched the new Moto Z Mods smartphones, and the company carried out this campaign in the US.
Motorola as a series has done well in markets like India with Moto G, Moto E being fairly popular smartphones. But breaking into the premium segment has not been easy for the company, although it hopes to do that with the new Moto Z and Mods.
Read the full statement below from Lenovo on Motorola job cuts below
Lenovo today announced a resource action impacting less than two percent of its approximately 55,000 employees globally. The majority of the positions being eliminated are part of the ongoing strategic integration between Lenovo and its Motorola smartphone business as the company further aligns its organization and streamlines its product portfolio to best compete in the global smartphone market.
The company is also making adjustments in other areas of the business as part of a continued effort to manage costs, drive efficiency and support ongoing improvement in overall financial performance. While these actions are never easy, they are a necessary part of our continued efforts to ensure long-term, profitable growth across all of our businesses.
Lenovo is absolutely committed to Chicago and we plan to maintain our Motorola Mobility headquarters there. Chicago has a well-deserved reputation for technical excellence and as the hub of our global R&D for our smartphone business we expect to take advantage of local talent to continue developing Moto products there.
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