Last year, this firm has bought by Google. It was planned to merge or close one third of ninety facilities that includes factories and offices.
This US based firm wants to shift in low cost non-Smartphone to smart phone. They said, “More innovative and profitable devices is what we are targeting”
Two third of the manufactured products will go to outside of US. Google said that they expect the cost of severance packages to be $275million.
In a statement they said, “Motorola is willing to help them with this complicated transition as well as they will provide many severance package and outplacement service to help those jobless people to find new job.”
Motorola employs approximately 250 staff in the three sites of UK – Livingstone, Basingstoke and Swindon but they didn’t confirm where they will cut the jobs.
Motorola is one of the dominated mobile phone company which has stepped ahead in the competition of phone market. Their main competitors are Apple and Samsung.
It lost money in the 14 and the 16 quarters. Goggle said, “Google took over Motorola Mobility in 2011 that cost us $12.5bn deal, and offered us access to in excess of 17,000 technology patents.”
Anshul Gupta – a technology analyst said that the job and facility cuts are a step to absorb Motorola into the organization.
From the research firm Gartner, Mr. Gupta said that he is expecting that Google is trying to bring some innovative device, which will focus on durable Smartphone not a low-end featured phone.
The success of Samsung that has received lots of positive feedback for the Nexus Smartphone and tablets using Google’s android system is just an illustration of Mr. Gupta’s statement.
According to the industry specialist, Samsung is going to defeat the Nokia and will become world’s big seller of cell phone at the coming days.
In 2012, Samsung has sold out more than 93 million mobile phones in the first three months, which captured 25% of total market share. However, Motorola sold only 9 million handsets over the same period. Among these 9 million phones, 5.1 million were Smartphone. This data represents that Motorola is facing $81 net loss.