Motorola devices

Google-owned Motorola Mobility is to lay off 1,200 employees -- more than 10 percent of its workforce -- in its latest round of restructuring. According to reports from the Wall Street Journal, the job losses will affect workers in the U.S., China and India as the company seeks to become profitable.

These latest layoffs come on top of a 20 percent cut in jobs which occurred last August, and saw Moto close up shop at a third of its offices. At the time the manufacturer indicated that it wanted to transition out of "unprofitable" markets and focus on high-end handsets.

In an internal email obtained by the WSJ, Moto says, "while we're very optimistic about the new products in our pipeline, we still face challenges," adding "our costs are too high, we're operating in markets where we're not competitive and we're losing money."

A Moto spokesperson is quoted in the journal as saying "These cuts are a continuation of the reductions we announced last summer. It's obviously very hard for the employees concerned, and we are committed to helping them through this difficult transition."

Despite the launch of the high-profile RAZR i in partnership with Intel, Moto remains a marginal player in the European smartphone market. And in the U.S. it's struggled to compete against the dominant force of Samsung. High-end hopes are now being pinned on the rumored "X Phone," said to be due for release later this year.

Source: Wall Street Journal


Reader comments

Motorola Mobility to cut more than 10 percent of workforce


Probably just laid off all those who work on Blur. Since it is rumored the Moto X phone will be running pure android. I wish Google would bring Motorola manufacturing back to the U.S., need to show corporations that they need to invest in America if they want us to buy their products. Manufacturing is the only way the U.S. will ever get out of the debt crisis we're still in

"...And in the U.S. it's struggled to compete against the dominant force of Samsung"

It doesn't help that they've been as married to carrier exclusivity as HTC.

That and the physical design of most of their phones is just... bad. Ugly, unwieldy, not nice to hold and/or with ridiculous camera humps. Don't tell me your phone is the thinnest ever made if you accomplish that by having everything jammed into a 1/2 inch thick hump at one end.

So #MotoFail stealthily locked down previously unlocked phones and then turned around and broke their promise to upgrade those phones, thus alienating existing customers. Then they publicly admit that they won't have any WOW for a long time, thus alienating future customers. With a business model of growth like that, I'm just SHOCKED to hear they aren't growing their workforce. Google isn't that stupid. They have to be engineering a total failure of the Moto brand. Maybe they bought it as a tax writeoff?

Nobody knows for sure but their latest release removed several of the Moto apps and replaced them those from Google, so there would not be the need to have the same size software development operations within the company.

For Application developement they could always tap into Google resources, I mean that's the way to leverage your workforce to get the most out it; eliminate the duplication.

It's a shame to hear this because look what Moto did with the OG Droid back in 2009. They put Android on the map, it was a HUGE phone release for Motorola and Android/Google. It's a real shame that momentum fell off but other players stepped up their game. Samsung, HTC, LG, and all the rest have stormed the Android phone business and Motorola has somehow fallen behind. The Droid 2, 3, and 4 haven't been big enough to keep the steam going. I really want to see Motorola Mobility stay around in this tech sector for years to come. To me they are an American icon when it comes to electronics and cell phones. I mean they built the first ever smartphone that Marty Cooper developed and then the hugely successful Star Tac of the 90's and original RAZR of the early 2000's. They can't die!