Motorola will cut 20% of its global employees in a bid to reinvent the company, the telecommunication company said Monday.
The cutbacks will equate to 4000 jobs, a third of which will be in the US. In addition to closing down 94 offices worldwide. Google had bought Motorola earlier this year for $12.5 billion and they were now looking to restructure the company. Economic analysts suggests that the cuts came after Motorola lost $233 million in its first six months under Google.
The New York Times reported that Motorola’s chief executive Dennis Woodside said that the goal of the move was to transition from making low-end phones to premium models. In other words the company will focus solely on making smart phones from now on.
The company said that the cutback will have “minimal” effect on the US economy especially as the company will look to shrink its offices’ operations in India as well as its research center in China. Woodside described the market in the two countries as “unprofitable.”