A new report talks about a majority of Motorola’s workforce being laid off. The company has apparently decided to slash about 700 of its employees in the U.S. There are only 1200 employees in the region, and this new wave of employee cutdowns will bring the number to 500.
This comes as Lenovo plans to shift Motorola Mobility’s focus onto the global markets. The company mentioned in its press statement that this only accounts for about 2% of Motorola’s global workforce, which stands at 55,000.
The company has also reiterated that the employees in its Chicago offices will not move. Rumors previously indicated that Motorola would shift its employees from Chicago to North Carolina. While this might be a logical decision to cut down the losses, the new wave of cuts tell a story about the fickle state of Motorola’s business in the U.S. Lenovo cut down its staff significantly last year, so a move like this was always on the cards.
Here’s Lenovo’s full statement:
Lenovo today announced a resource action impacting less than two percent of its approximately 55,000 employees globally. The majority of the positions being eliminated are part of the ongoing strategic integration between Lenovo and its Motorola smartphone business as the company further aligns its organization and streamlines its product portfolio to best compete in the global smartphone market.
The company is also making adjustments in other areas of the business as part of a continued effort to manage costs, drive efficiency and support ongoing improvement in overall financial performance. While these actions are never easy, they are a necessary part of our continued efforts to ensure long-term, profitable growth across all of our businesses.
Lenovo is absolutely committed to Chicago and we plan to maintain our Motorola Mobility headquarters there. Chicago has a well-deserved reputation for technical excellence and as the hub of our global R&D for our smartphone business we expect to take advantage of local talent to continue developing Moto products there.
Via: Droid Life