Google plans to downsize Motorola workforce by twenty percent

You might not know this, but Motorola became two different companies in 2011. These two companies went on and took the simply inspired names of 'Motorola Mobility' and 'Motorola Solutions'. Outside of business you may never have heard of the Solutions side to the company.

Motorola Mobility is the company you'll likely have heard more about. It's the company that Google bought out for $12.5 billion dollars, and it was the side of the company that was struggling for quite some time. Google's decision to buy them out was an interesting one, since it allowed them access to a company that could make Android handsets in-house.

Google wanted to keep Motorola Mobility small, as a subsidiary of what is now a very large company. On Sunday, Google alerted Motorola Mobility employees about the decision to trim 20% of the workforce off. As well as this, Google intends to close 94 offices for the company globally, as they pull out of less successful markets.

20% of the Motorola Mobility workforce equates to around 4,000 employees; two-thirds of these employees are located within the United States. Motorola Mobility's downsizing could be reflective of how Google wants the company to operate within the massive search engine's empire. Motorola Mobility are not meant to be a massive company, but this could be the way that Google steps into the smartphone business with a handset built in-house.

The Nexus line of smartphones, while Google's own breed of Android, historically have been built by other companies. The Nexus One, for example, was constructed by HTC. Both the Nexus S and Galaxy Nexus are manufactured by Samsung.

To this date Motorola has never gotten an opportunity to flex its muscles with a Nexus flagship. Falling under Google's command there is now a possibility for Motorola to step their game up. Their most well known line of devices are the 'Droid' phones, which are locked to Verizon's network.

Source: WinSuperSite

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11 Comments

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What you need to understand is that Google bought Motorola for the patents and nothing else, everything besides the patents is either a plus for them or if there's no profit they'll close it down.

First thing I thought when Google purchased the mobility division was that they would close the operation in Illinois and bring it to California.

Cyborg_X said,

Sure just look at HTC. oh wait nvm.

You mean that obscure Windows mobile manufacturer that no-one had heard of until they adopted Android and their profit went through the roof? Yeah Android worked out terrible for them.

Majesticmerc said,

You mean that obscure Windows mobile manufacturer that no-one had heard of until they adopted Android and their profit went through the roof? Yeah Android worked out terrible for them.

A company that generates $10B in revenue with devices in nearly every market in the world is obscure to you? No sense arguing with that troll food.

Isn't HTC selling WP too??? well i assume they are making lot of money off WP.. Oh wait... They make money out of just Android...

Cyborg_X said,

A company that generates $10B in revenue with devices in nearly every market in the world is obscure to you? No sense arguing with that troll food.

Prior to the Nexus One, HTC was a relatively unknown brand (at least here in the UK), but they're much more well known now (being the second most known Android smartphone brand after Samsung) thanks to the success of their android range (Desire onwards). Granted, they were a profitable company with WM6, but not nearly as profitable as they are now, in no short part due to the commercialisation of their Android phones (as well as their WP7 phones to a lesser extent).

Just because their profits were down this quarter doesn't mean that Android has been bad for them. Android has been very good for them, even after their drop in earnings.

Majesticmerc said,

Prior to the Nexus One, HTC was a relatively unknown brand (at least here in the UK), but they're much more well known now (being the second most known Android smartphone brand after Samsung) thanks to the success of their android range (Desire onwards). Granted, they were a profitable company with WM6, but not nearly as profitable as they are now, in no short part due to the commercialisation of their Android phones (as well as their WP7 phones to a lesser extent).

Just because their profits were down this quarter doesn't mean that Android has been bad for them. Android has been very good for them, even after their drop in earnings.


+1 people make comments about Android but WP don't even make any substantial revenue for HTC.... So Yeah Android is a life saver for HTC.

HTC have had dropped revenue for only three Quater now but they still make profit.