Lenovo, the Chinese multinational tech giant has today announced that after another sub-standard quarter of results, it has resorted to laying off a massive 1,100 personnel from its workforce. This sacking, which mostly impacts employees of the Motorola Mobility smartphone division, accounts for almost 2 per cent of its humongous 55,000 employee team globally.
This round of lay-offs follows pursuit to the large-scale(i.e 3,200 to be exact) reduction in headcount late last year. It was undertaken in response to economic uncertainties, currency fluctuations, decline in PC demand as well as increase in smartphone competition. The company had then said that these lay-offs will affect its non-manufacturing workforce and help it save about $1.35 billion in annual wages(and that’s a huge number to push towards emulaitng growth in the current competititve market).
Commenting on the current round of lay-offs, a Motorola spokesperson confirmed the lay-offs to Droid-Life and said,
The cuts are part of the ongoing strategic integration between Lenovo and its Motorola smartphone business as the company further aligns its organization and streamlines its product portfolio to best compete in the global smartphone market.
In addition to the lay-offs, there have also been speculations that Lenovo is mulling over the idea of relocating some remaining Chicago-based staff to North Carolina — where Lenovo’s US headquarters are based. But, the company has debunked any rumors of such sort and reiterated the fact that “they are absolutely committed to Chicago and will remain there.”
Ever since the sale of the smartphone business to Google, and then to Lenovo, Motorola hasn’t been able to pick up and find its way back to glory days — those of the Razr and Turbo. The former had acquired the Moto phone business from Google for a meager $2.91 billion in late 2014.
The reported lay-offs by Lenovo, however, seem to be a part of the final steps that the company has taken to merge Motorola’s mobile business into their own. It has recently also taken steps to phase out the iconic ‘Motorola’ brand to show that their product line-up is now under the Lenovo umbrella. It has been renamed to “Moto by Lenovo”, though the corporate identity still continues to live on for a while.
In addition to streamlining the mobile business, the company is also making certain changes to its global product strategy and says,
The company is also making adjustments in other areas of the business as part of a continued effort to manage costs, drive efficiency and support ongoing improvement in overall financial performance. While these actions are never easy, they are a necessary part of our continued efforts to ensure long-term, profitable growth across all of our businesses.