14 DAY TRIAL // Mobile phone maker Motorola Mobility is about to send home around 20 percent of its employees, some of the latest reports on the matter suggest.
Reportedly, the company is gearing up to slash 4,000 jobs, which represent one fifth of its total 20,000 workers.
Two thirds of these job reductions will be outside the United States, sources familiar with the company’s plans told AllThingsD.
One third of the phone maker’s 94 facilities around the world will be shut down following the move, the same report suggests.
However, it appears that the handset vendor will focus on keeping hubs in Sunnyvale, Calif., Chicago and Beijing open, and that it will move the Libertyville, Ill., facilities to its downtown Chicago Merchandise Mart building.
Rumor has it that the decision to cut so many positions within the company is driven by Motorola’s plan to focus on the development of fewer, better products moving forth.
According to The New York Times, Dennis Woodside, Motorola’s new chief executive, previously the head of Google’s sales and operations for the Americas, has already confirmed the company’s plans for fewer smartphones.
“While Motorola expects this strategy to create new opportunities and help return its mobile devices unit to profitability, it understands how hard these changes will be for the employees concerned,” a Motorola official said, AllThingsD reports.
“Motorola is committed to helping them through this difficult transition and will be providing generous severance packages, as well as outplacement services to help people find new jobs.”
A few years ago, after losing significant market share, Motorola adopted Google’s Android operating system and managed to return to an ascending route.
It has been working closely with Google ever since, a partnership that culminated with the Internet giant purchasing the mobile phone maker. The transaction was closed earlier this year.
Google was said at the time to have bought Motorola mainly for the wide range of patents it held in the communication segment, which should help it better fight rivals.