Lenovo Slashes More Jobs From Motorola Smartphones Division

by CXOtoday News Desk    Sep 27, 2016

Lenovo hangers

Tech company Lenovo has once again laid-off hundreds of its workers, with most of the workers coming from the Motorola smartphone division.

In a recent statement, mentioned that there would be job losses in it’s smartphone business, which should affect less than 2 percent of the its 55,000 strong global workforce. Though the company refused to put a particular figure as to how many would face the axe, they have accepted that the Motorola smartphone making division would be at receiving end of these axes.

The lay-off was first confirmed by Droid-Life through unnamed sources. Lenovo has reportedly laid off more than 50 percent of the remaining workers belonging to the Moto division. Lenovo themselves have not put a number on this to confirm. However, they did clarify that these job cuts were because they wanted to streamline their product portfolio, and wanted to reorganize the entire company as a whole.

Motorola has been changing hands as a company since the past few years. Google bought them for a price tag of $12.5 billion in 2011, before selling them off to Lenovo for a price tag of $2.9 billion in 2014. The deals were carried out with the aim of improving presence in North American, Latin American, and Western European markets where they have stronger brand image, and remains a force to be reckoned with, in the smartphone business. The brand itself has done well as a series in India as well, with Moto G and Moto E being very popular and successful since their launch, but could not breach the premium price bracket barrier yet. They are hoping to change it all with the Moto Z and Mods models.

As per the official statement made by the company, “ 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 also said that it is 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.”