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Wednesday, August 15, 2012

Motorola Mobility to 'shrink operations' in India; to cut 4,000 jobs

According to a latest update, the ailing mobile phone maker Motorola Mobility has told its employees that it is planning to lay off 20 percent of its workforce and close a third of its 94 offices worldwide. If reports are to be believed, it will shrink operations in Asia and India, and center for research & development in Chicago, Sunnyvale and Beijing.


It is reportedly said that the latest cuts are the first step in Google's plan to reinvent Motorola, which has fallen far behind its biggest competitors, Apple and Samsung.

To rewind: Earlier in August 2011, Google has announced its plans to buy phone-maker Motorola for its 17,000 patents and 7,500 patent applications. Further, it completed Motorola Mobility for US $12.5 billion in May 2012.
 
It is believed; the latest deal between Google and Motorola will boost Google's competitive edge in the mobile device market as well as give search engine’s access to Motorola's range of Android powered offerings. This way, the deal is likely to be beneficial for both the companies.

Dennis Woodside, Motorola's new Chief Executive Officer has shared his view in an interview about Motorola’s plans to reduce work force. He stated, one-third of the 4,000 job cut will be in the United States.

Besides the upcoming job cuts, Google has also gutted Motorola management by letting go 40 percent of its Vice Presidents. In addition, it also hired new senior executives.

Market experts believe, Motorola is planning to leave unprofitable markets, stop making low-end devices and focus on a few cellphones instead of dozens. This way, Google is trying to shore up its Android mobile business and expand beyond search and software to hardware manufacturing.  
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