BBC Online reports that mobile phone maker Motorola Mobility is to shed 4, 000 jobs or twenty percent of its global workforce as part of a restructuring process. However, the company has not confirmed any losses in any region outside of the US at this point.
According to a Reuters online report, the majority of job losses (about one third) will take place in the US.
Motorola Mobility was reportedly purchased by Google for $12.5 billion in 2011.
The BBC report states that the company has made known its intention to “close or merge” approximately one third of its worldwide 90 production and research facilities.
The job cuts reportedly form part of a shift by the US-based company to move away from smartphones and focus more on what is described as “more innovative and profitable devices.”
Motorola’s South African operation is headquartered in Woodmead, Johannesburg.
The company’s Head of Marketing for Motorola South Africa, Dorothy Matemba, was approached to find out if there would be any implications locally, but was not in a position to comment.
Although the company stated it would not be providing any additional information at this time with respect to specific countries or regions, a Motorola spokesperson said:
“Today, Motorola Mobility announced that it is reducing its headcount by approximately 4,000. Two-thirds of the reduction is set to occur outside of the U.S. In addition, Motorola plans to close or consolidate about one-third of its 90 facilities as well as simplify its mobile product portfolio–shifting the emphasis from feature phones to more innovative and profitable devices. While Motorola expects this strategy to create new opportunities and help return its mobile devices unit to profitability, it understands how hard these changes will be for the employees concerned. Motorola is committed to helping them through this difficult transition and will be providing generous severance packages, as well as outplacement services to help people find new jobs.”
Chris Tredger, Online Editor
