Lenovo Cutting More Jobs From Motorola Mobile Unit
The device maker says the latest layoffs will impact about 1,100 employees as the company looks to improve its overall financial performance.Lenovo is making another round of job cuts at its Motorola unit, the latest round of cuts at the mobile handset division since buying it from Google in 2014 for about $2.9 billion. Lenovo officials, responding to news reports about the job cuts, confirmed the layoffs in a statement to journalists, saying they would affect fewer than 2 percent of its 55,000 or so employees worldwide, or about 1,100 workers. They said that the "majority of the positions being eliminated 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." The move comes at a time when the once-hot smartphone space has slowed in recent quarters as the global market matures. IDC analysts in July said that in the second quarter, vendors shipped 343.2 million smartphones worldwide, up. 0.3 percent from the same period in 2015. Compared with the first quarter, the number of units shipped grew 3.1 percent, the analysts said. Lenovo was not among the top five smartphone vendors on the IDC list, in which three of the top five were from China—Huawei Technologies, Oppo and vivo. Samsung and Apple had the top two spots.
Lenovo officials were optimistic after buying the Motorola Mobility unit from Google, saying in February 2014 that they expected the business to be profitable within six quarters. They saw a chance to rapidly expand the company's presence in the highly competitive smartphone space.