After shutting almost a third of its offices in World, Motorola Mobility has planned to shut down its India website. What took the world by surprise was the recent announcement of Motorola Mobility to lay off 20 percent of its work force.
Anyone visiting the Motorola Mobility India website gets a message that reads, “Important Message to our customers in India. We are streamlining our business and support systems, and unfortunately, we’ll no longer have a dedicated website for India. Your local support site will remain open well into the future, and we’ll continue to provide support for our existing products”
Google bought Motorola Mobility for 12.5 billion in May. Motorola Mobility has gone through heavy losses since last year and there seems no recovery.
Regarding the changes taking place in the company Google said in the US Securities and Exchange Commission, “These changes are designed to return Motorola’s mobile devices unit to profitability, after it lost money in fourteen of the last sixteen quarters”.
Internet giant Google has planned to cut about 4,000 jobs at its Motorola Mobility unit, which accounts for around 20 percent of the company’s staff among its 20,000 employees. The firm also plans to shut down about one-third that accounts for 30 of Motorola mobility’s 90 facilities. The decision came in effect as Google continues to seek focus on the sale of its Android devices.
Google sees these actions as a step to get Motorola units into profits after it lost money in 14 of the last 16 quarters. The firm revealed cutting down on the number of devices in Motorola’s lineup as part of a consolidation effort.
Experts at Google state that the firm expects to see a charge of no more than $275 million related to the cuts.
The California-based company announced that two-thirds of the reduction will be outside the US. As reported in the New York Times, Google plans to cut operations in Asia and India. The firm plans to focus on development in Beijing and will also make a development push in Chicago and Sunnyvale, California.
Google, owner of the most popular search engine acquired Motorola in May for a price of $12.5 billion, which was the biggest takeover of the firm. This acquisition also stepped up Google into the foray of mobile device, landing in direct completion with Apple.
This deal gave Google a trove of patents accounted for $5.5 billion of the total pricetag. This acquisition of so many patents is believed to help the firm stay protected against an increasing number of intellectual property lawsuits.
In taking over Motorola, Google’s plans seem to leave an impact on the smartphone network. It has left many people wondering as to how the acquisition will affect other Android partners.
However, shares for Google were also noted to go up slightly in pre-market trading, rising $7.20 to $649.20.… Read the rest