Last week WSJ reported that Motorola is cutting another 10% of its workforce, on top of 4000 employees they have fired since last August.
According to the e-mail Moto management sent to staffers in U.S, China and India:
“… our costs are too high, we’re operating in markets where we’re not competitive and we’re losing money”.
Today we got more details of where those coming staff cuts will happen. And, it seems, Motorola’s presence in China will be hit the hardest.
According to Sina.com, who talked to Motorola Mobility Beijing branch staff, there are about 1000 employees in mainland China left after last year’s layoffs, doing all kinds of R&D, technology, sales and marketing work. According to the plan, all R&D and technical roles will be eliminated, leaving only about 200 in sales and marketing to push Motorola wares.
According to Sina sources, Google decided to concentrate all Motorola’s R&D work in the United states. Which makes sense, since Motorola smartphone sales in China are barely noticeable and even those handsets that ship there, come without any Google services on them.
Keeping fully staffed R&D shop, bleeding money without even a chance to promote Google’s own agenda, is pointless.
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