Corporate News: Google’s Motorola to Cut Staff 10%

The Wall Street Journal has reported that Motorola Mobility is set to lay off 1,200 employees, over 10% of its staff.  These layoffs come only months after Motorola began cutting 20% of its workforce in late August.  According to Motorola, as stated in the article, “‘our costs are too high, we’re operating in markets where we’re not competitive and we’re losing money.'”  News of Motorola suffering is no surprise.  It has failed to become a big enough player in the smartphone and tablet markets dominated by rivals Apple Inc. and Samsung Electronics Co.  Since Google’s acquisition of Motorola in 2011, Google has tried sending members of its own staff to help Motorola, but to no avail.  Motorola has shown operating losses of $500 million and $350 million in the third and fourth quarters of 2012, respectively.

Motorola’s struggles have deep implications about the future of the smartphone and tablet markets.  It seems, for the time being, that no company is set to replace Apple and Samsung as leading providers of these technologies.  Competition is noticeably absent in a market that has grown overwhelmingly over the past few years.

Written by: Constantine Kostikas

Source: The Wall Street Journal


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