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Motorola Mobility cuts headcount by about 1200 workers

0
  • By Shane McGlaun
  • on 8 Mar, 2013

Motorola Mobility cuts headcount by about 1200 workers

Motorola Mobility has announced that it will be laying off approximately 10% of its current workforce. The 10% number will impact about 1200 employees. As Motorola Mobility continues to reduce costs in an effort to return to profitability. Motorola officials told employees via e-mail that they are “very optimistic” about the new products they’re working on but that “costs are too high.”

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The 1200 workers will be shed from the US, China, and India. A Motorola spokesperson said that the headcount reduction is a continuation of cuts that Motorola Mobility had announced last summer. In August of last year, Motorola announced that it would be cutting 20% of its workers, or about 4000 employees.

Motorola has promised it is “committed” to helping workers impacted by the cuts through the transition period. Google purchased Motorola Mobility for $12.5 billion in 2011. After Google purchased Motorola Mobility, the hardware company continued to post significant losses.

In Q3 of 2012, Motorola Mobility lost over $500 million. The losses continued during Q4 2012, despite the lucrative holiday shopping season, with Motorola Mobility losing over $350 million during the quarter. Motorola didn’t mention how much money it expects to save with the additional layoff of 1200 employees.

[via Wall Street Journal]
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