News & Analysis
Comment
Sheetal.Pandey
Motorola always hires the best of talent. The staff would definitely be picked ...
garydpdx
Don't forget that there have been two Motorolas in the past couple of years ... ...
Google cutting 20% of jobs at Motorola Mobility
Peter Clarke
8/13/2012 5:18 AM EDT
LONDON – Motorola Mobility, the mobile phone company acquired by Google in May 2012 for $12.5 billion, has reportedly notified staff that it plans to cut 20 percent of jobs and close one third of its 94 offices worldwide.
About one third of the estimated 4,000 job cuts are expected to be made in the United States.
The strong action is seen as the first step in moves by Google to reinvent Motorola, one of the oldest brands in electronics, but one that had been in trouble for several years prior to the Google acquisition. Motorola was the pioneer of the cellphone but despite achieving some success with the Razr brand largely missed out on the smartphone transition.
Google's move on Motorola Mobility had two purposes according to observers at the time; to bolster its legal position with 17,000 patents that would help it defend its Android platform but also to help Google move into selling equipment, specifically smartphone and tablet computers.
It is understood that Google is pushing Motorola to focus on just a few high-end models of phone with added value and differentiation through additional sensors and software features.
Related links and articles:
Analyst: Apple, Samsung snagged over 100% of Q2 handset profits
Jha out as Google closes Moto Mobility buy
What Google/Moto means for Android OEMs
Navigate to related information


agk
8/13/2012 7:34 AM EDT
Adding additional sensors with additional software features definitely will have a good effect and comfort for the users.
Sign in to Reply
goafrit
8/13/2012 10:07 AM EDT
Let Google open VC funds for some MOT staff. It is tough to be an employee in this age. Nothing is guaranteed.
Sign in to Reply
goafrit
8/13/2012 10:07 AM EDT
Really bad news for Obama. Now, the unemployment will tick up as the Bureau of Labor will add that up as lost jobs. Can someone ask Google to hold on?
Sign in to Reply
seaEE
8/15/2012 12:37 AM EDT
If Ireland can attract industry, why can't the U.S.?
Sign in to Reply
sanjaac
8/13/2012 12:27 PM EDT
"Adding additional sensors with additional software features" is what everybody else in the business is doing. Take your conclusions.
Sign in to Reply
John_Galt
8/13/2012 12:37 PM EDT
"Really bad news for Obama. Now, the unemployment will tick up as the Bureau of Labor will add that up as lost jobs. Can someone ask Google to hold on?" Great, now we have supposedly well-educated professionals who espouse that private industry should intentionally mislead the electorate for one party's political gain...did you ever stop to think that if that very same party lived up to its promises that unemployment would be 6% or less by the end of his first term that such lies would be unnecessary?
Sign in to Reply
KB3001
8/13/2012 12:50 PM EDT
It's bad news for the people who are going to be laid off really. We should not care much for Obama's prospects as a result of this (or Romney's for that matter).
Sign in to Reply
KB3001
8/13/2012 12:48 PM EDT
I think this was inevitable, albeit terribly sad for the people who are going to be laid off.
PS. I believe that concentrating on higher end models would give more confidence to other Android platform manufacturers. Google should not compete head-on with other Android platform manufacturers, otherwise Android will lose its appeal.
Sign in to Reply
daleste
8/13/2012 10:17 PM EDT
I just hope Motorola doesn't lose all of it's personality as it becomes part of Google. It was a great company at one time.
Sign in to Reply
Frank Eory
8/14/2012 12:30 PM EDT
It's a bit late for that. Yes, it was a great company at one time, but 20 years of divestiture have left it a mere shadow of its former self. Motorola is little more than a brand name these days.
Sign in to Reply
garydpdx
8/15/2012 4:01 PM EDT
Don't forget that there have been two Motorolas in the past couple of years ... the 'classic' Motorola, Motorola Solutions, continues to exist out of Schaumburg, IL.
Sign in to Reply
GREAT-Terry
8/13/2012 10:55 PM EDT
One third of job cut in US... pretty sad but that seems to be expected. How the American employees can add values to the company? It is ironic that many big and successful business sectors are US companies and they generate quite impressive revenue but those can't really be beneficial to general employees in US as the money basically is making out of the cheap workforce outside US!
Sign in to Reply
selinz
8/14/2012 3:13 AM EDT
Well, ain't that ironic. Many of those people who generated the 17k patents and ip are getting served up pink slips. It would be nice if Apple and Google could figure out how to be profitable without plundering their communities.
Sign in to Reply
any1
8/14/2012 9:50 AM EDT
Did Google ONLY buy Motorola for its patents and other IP? Then Motorola would be better served to be spun out somehow into a separate company again (with access to all it's former IP).
If Google has no intention of letting Motorola truly compete with Samsung why keep it held hostage?
Sign in to Reply
KB3001
8/14/2012 7:52 PM EDT
"Then Motorola would be better served to be spun out somehow into a separate company again (with access to all it's former IP). "
I think this would be better for all parties involved.
Sign in to Reply
chipmonk
8/14/2012 10:59 AM EDT
Paul Galvin founded Motorola in the 1920s with a unique product a car radio immune from EM noise due to spark plugs - hence the name. Son Bob grew it to the third largest electronics conglometrate in the world ( 1991 ) and stock split thrice in 6 years. But then he handed over the reins to his son Chris who ruined it by letting the various division heads fight among one another and hinder transition to new technologies e,g. a RISC processor at the Semiconductor division or moving from Analog to Digital cell phones. Then there was the Iridium fiasco - a satellite phone for those who could n't afford it ! And the disastrous push to grow in China and letting them get away with robbing Moto blind ( base - stations as well as wafer fabs ) in the vain hope of getting a leading market share in China. At the end of it the main reason for Motorola's downfall was cronyism in corporate decision making - a bunch of under - qualified engineers who had worked their way up to the board room by toadying to the Galvin family and made awful decisions in a consumer electronics world they had helped create but could no longer keep up with in spite of the terrific R&D that Google has now captured.
Sic transit gloria.
Sign in to Reply
microe
8/14/2012 6:21 PM EDT
"...push to grow in China and letting them get away with robbing Moto blind in the vain hope of getting a leading market share in China..." -- Provide the evidence of China robbing Moto! There are so many examples that company succeeded by combing its technology with China's low manufacturing cost. It is Moto's own failure. Stop accusing China!
Sign in to Reply
chanj
8/14/2012 12:40 PM EDT
The ultimate measure is value added. What value Motorola Mobility (MM) is bring on the table? What are the value of the MM's staff bringing to Google? Acquiring the patents is apparently an appealing move. Is Google looking for more from MM given ODM/ OEM vendors are primarily resided in Asia?
I guess the incidence has long been expected. Whatever has happened happened. It is a matter of how MM staffs come together to bring some good stuffs to the community. I can't wait to see these group of folks come up something exciting - the next big thing. ;)
Sign in to Reply
selinz
8/14/2012 6:59 PM EDT
Chipmonk, how can you blame Galvin. I'd say that George Fisher had much more to do with the demise that Chris Galvin, focussing only on short term profit and ignoring long term effects of decisions that were made. All the spintering of the company started when he was at the helm. IMHO, of course. From good ole WIkipedia "In 2008, several years after Galvin's departure, a study was completed by the Monitor-Global Business Network consulting company to identify and compare the best + $5B in revenue global high tech corporate turnarounds since 1990. In comparing six year periods including three years of turnaround actions and the corresponding companies’ resulting financial performance, the study placed Galvin’s turnaround of Motorola as one of the top five large high tech turnarounds. The companies compared were IBM, Apple, Xerox, HP and Motorola."
Sign in to Reply
garydpdx
8/15/2012 2:07 PM EDT
Chris Galvin's tenure was brief and many of the problems mentioned were already in place when he arrived. Some may argue that he was rushed into the position and took the fall. Along the way, the V3 Razr was a project that he supported but Ed Zander got the credit for it.
Sign in to Reply
Sheetal.Pandey
8/19/2012 9:08 AM EDT
Motorola always hires the best of talent. The staff would definitely be picked up by the best in the industry but the stigma people's heart gets no one can cure that. I guess the corporate world of telecom/software as fascinating it is the same time its dangerous. But not sure how engineers can make an alternate earning at the initial part of their career.May be real estate or agriculture..
Sign in to Reply