Motorola to Cut 4000 Employees as It Focuses on High-end Devices - chavisiont1981

Motorola Mobility is lancinate 4,000 employees American Samoa the company shifts its emphasis from feature phones to revolve about senior high-destruction devices, the company said late Lord's Day.

About two-thirds of the staff reducing is put up to occur outside the U.S., the company aforesaid in a statement.

Motorola, which was acquired by Google in May, plans to close or to consolidate about third of its 90 facilities, as well as simplify its mobile product portfolio, fashioning a shift from feature phones to more "innovative and juicy" devices, the caller aforesaid.

Google had sol far not discussed what it plans to do with Motorola, with some speculating that it bought the fellowship chiefly for its patents, and may non be curious in its mobile hardware business in a cut-throat market.

The Cyberspace giant has, however, unveiled its personal hardware products, including the Nexus 7 pad of paper running the Android operating system at its Recent epoch I/O developers conference in San Francisco.

Piece Motorola expects its revolutionary strategy to create new opportunities and help return its mobile devices unit to profitability, it understands how hard these changes bequeath be for the employees concerned, Motorola said in its statement. The company is committed to helping the staff through the challenging transition and will be providing generous severance packages, as well as outplacement services to serve 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 trillion, which brought Google's add together operating income down as a percent of its revenue away 6 percentage points.

Shift in Priorities

The move away Google is designed to return Motorola's mobile devices unit to profitability, after it lost money in fourteen of the last sixteen quarters, Google said in a restrictive filing on Monday. Investors should however expect to see portentous revenue variability for Motorola for various quarters, it added.

The ship's company expects to get a severance-related bang of no greater than $275 million, which it expects will be largely recognized in the third quarter, with the rest recognized by the end of 2012. IT also expects to obtain other restructuring charges related to the actions, most of which will equal constituted in the third quarter. The company said IT could not currently predict the amount of these other charges which it same could follow significant. Motorola had 20,293 employees as of June 30.

Motorola plans to cut the number of devices the company makes from the 27 it introduced last year to sporting a hardly a, Dennis Woodside, Motorola's new honcho executive director, told The New House of York Times. He plans to make water products that are stylish again, and include for instance 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 paper.

Source: https://www.pcworld.com/article/460601/motorola_to_cut_4000_employees_as_it_focuses_on_highend_devices.html

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