When Google bought Motorola mobility for $12.5 Billion in May, there was concern, as there would be in any new acquisition as to what Google’s plans would be for the company and whilst Google haven’t yet decided they have stated that they will be cutting 20% of jobs at Motorola, which equates to roughly 4000 people worldwide.
The move will close around 1/3 of Motorola’s 94 offices around the world and cost Google $274 Million in severance cuts.
Trimming The Fat
Google stated that no particular or specific department is going to be cut, and that the downsizing is company wide, with 1/3 of the cuts being made in the US and the other two-thirds being that of international.
Dennis Woodside the new Chief Executive at Motorola told the New York Times that; ‘Motorola will be streamlined quite a lot. A large amount of feature phones and devices are to be scaled back to a few quality products. The focus on these ‘few’ devices is to be battery life, voice recognition and better camera’s and sensors.’
Motorola having been up there among one of the biggest mobile phone manufacturers has seen nothing but a decline in profits and market share of late, In Q1 this year Motorola’s global market share decreased to 2% which, compared to the big hitters such as HTC, Samsung & Apple is slim to none.
Google reported that Motorola hardware in addition to other revenues to the tune of just $1.25 Billion compared to that of $3.3 Million last year.