Doing Business | IT & Technologies

September 27, 2016

Lenovo lays off hundreds more from Moto phone division

Lenovo today confirmed that it is laying off a significant number of employees. The company says that the layoffs impact “less than 2 percent of its 55,000 employees” across the world, and that the majority of the layoffs are from the mobile phone division.

Lenovo wouldn’t specify exactly how many jobs were slashed from Moto, however. The news was first reported by Droid-Life this afternoon.

Today’s layoffs follow significant cuts last year, where Lenovo reduced its headcount by 3,200 across the company. In a statement provided to The Verge, Lenovo says the most current round of layoffs “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 company says that despite the layoffs, it is still intending to keep its Motorola Mobility headquarters in Chicago, refuting speculation that it may move the remaining staff to North Carolina where Lenovo has other offices.

Lenovo’s ownership of Moto has been marked by difficulties, as it has tried to adjust to compete in a very competitive smartphone market. Though Moto has produced well-executed, innovative smartphones in the past year, it’s not nearly as competitive as it once was. A raft of executive departures has also marred the company’s image under Lenovo’s tenure.

Text by The Verge
 

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