Print 11 comment(s) - last by NellyFromMA.. on Mar 11 at 8:54 PM

More Motorola Mobility workers get the axe

It hasn't been a good week to be an employee at Motorola Mobility with Google's hardware making arm announcing additional layoffs. Motorola Mobility has announced that it will shed 10% of its global workforce (roughly 1,200 employees). The cuts are in addition to the 20% reduction that Motorola Mobility announced last summer.

Motorola reportedly informed workers via e-mail this week that it would be instituting a new round of layoffs impacting workers within the U.S., China, and India. Motorola said that it was optimistic about new products it was developing, but costs are too high and it's still losing money.

A spokesman for Motorola said, "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."

Droid Razr Maxx HD

The cuts Motorola Mobility made last August affected about 4,000 workers. At the end of 2012, Motorola reportedly have 11,113 employees not counting the Motorola Home business. Motorola Mobility has continued to post losses with a loss of over $500 million in Q3 of 2012. Motorola also posted a loss of over $350 million during Q4 2012.

The Wall Street Journal reports that if Samsung gains majority control over the Android environment, Google would pour more resources and money into Motorola Mobility. Google executives have reportedly called Motorola Mobility an insurance policy against Samsung taking over the market. In the event that Samsung grows rapidly, Google could integrate Motorola Mobility with its Android software unit according to sources claiming to be familiar with Google's plans.
To add insult to injury, Google’s CFO recently stated that Motorola smartphones aren’t innovative enough.

Source: Wall Street Journal

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Awesome Google!
By Phynaz on 3/8/2013 11:45:18 AM , Rating: 1
10's of billions $ in profits isn't enough. Here's 1,200 more people whose lives will now be turned upside down.

But why should a billionaire CEO care if a $30 an hour software developer loses his home, right?

RE: Awesome Google!
By fic2 on 3/8/2013 12:02:06 PM , Rating: 4
Mobility has been loosing money since the year after the Razr originally appeared. Should a company continue to loose money indefinitely? Mobility is still in existence only because Motorola Home profits kept it afloat long enough to be bought by another company (Google). During this time Mobility kept adding people while Home kept laying off people - does that make sense? The division that was losing money was hiring people but the division that was making money was laying people off.

If a software engineer can only make $30/hour in this market they must not be very good and probably aren't worth hiring. The software people I know are making $100k+/year and are not hourly unless they are contracting by choice then they are making $100/hr.

RE: Awesome Google!
By ritualm on 3/8/2013 1:19:24 PM , Rating: 2
Meh, other than losses-to-layoffs, there isn't a consistent relationship between a company's bottom line and employee headcount these days.

Isn't it a few months ago when a company did firings and a profit report in the same sentence?

RE: Awesome Google!
By fic2 on 3/8/2013 1:54:07 PM , Rating: 2
That is true for profitable companies, but unprofitable ones will almost always have layoffs. In 2012 Mobility lost $500M in Q3 and $350M in Q4. Who didn't see the additional layoffs coming? I am surprised that it is "only" 1200.

RE: Awesome Google!
By NellyFromMA on 3/11/2013 8:54:31 PM , Rating: 2
Why does Google vs Samsung make sense again? And how does it not send a message of 'don't be too successful and don't over shadow Google' to other Android partners?

Who would have thunk it?
By rocketbuddha on 3/8/2013 8:25:32 AM , Rating: 2
From this post :D

Layoffs imminent. ;-)

RE: Who would have thunk it?
By retrospooty on 3/8/2013 10:12:33 AM , Rating: 2
Any time a company buys another, layoffs are eminent. Its especially true when one of those companies is struggling like Motorola was. Even if they werent struggling some jobs just don't need duplication period...

RE: Who would have thunk it?
By rocketbuddha on 3/8/2013 11:33:07 AM , Rating: 2
And what exactly Motorola and Google were duplicating? Perhaps the Android development team? If so as soon as Moto was on-boarded they shld have been transferred to Google or laid off. Wasn't there some rumors that Goog will spin off MM manufacturing to chineese OEMs like Lenovo/Huawei/ZTE/Xiomi ?

Google got Moto Mobility purely for patents period. So that Apple and MS will not have the balls to sue Google with arcane patents.
Already they spun-off the STB section. Why should Google have MM's manufacturing divisions.

What did Goog do to the "struggling" Motorola?

Instead the Nexus went to LG and Goog openly told its partners and public that MM would get nothing from Goog other than the umbrella.

By Spookster on 3/8/2013 2:02:50 PM , Rating: 3
did anyone believe Google bought them for anything other than their collection of patents to use against Apple?

RE: Honestly
By fic2 on 3/8/2013 4:07:22 PM , Rating: 2
Apparently at least 1200 people did...

By trajan24 on 3/11/2013 1:34:41 PM , Rating: 2
I have a Razr Maxx HD and it is an excellent phone. Battery life, build quality and call quality is the best. I hope they keep it up.

“And I don't know why [Apple is] acting like it’s superior. I don't even get it. What are they trying to say?” -- Bill Gates on the Mac ads

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