Lenovo's Motorola Mobility unit will take over the company's smartphone development and manufacturing, Lenovo confirmed, as it seeks to cut costs and improve sales.
Microsoft confirmed it has ended negotiations with staff and will close Nokia's former handset product development unit in Salo, Finland. Microsoft also reiterated that it plans to cut 2,300 of its 3,200 employees in the Nordic country, part of a broader restructuring and round of job cuts the software giant announced in July.
Lenovo's Motorola Mobility unit is cutting 500 jobs at its Chicago headquarters, or 25 percent of its Chicago-based workforce, as part of a broader restructuring and layoffs at its parent company. The cuts come after Motorola moved to Chicago's Merchandise Mart area in April 2014 after years of maintaining a headquarters in Libertyville, Ill.
Smartphone makers Lenovo and HTC both said they will cut jobs as they seek to increase profitability, an indication of both weakening demand in China and other major smartphone markets as well as the difficulty of Android-focused OEMs to achieve a profit.
Qualcomm struck a deal with an activist shareholder and agreed to cut $1.4 billion in costs, slash up to 15 percent of its workforce, change some of its corporate practices and review whether to split up its chipset and licensing units. The announcement, which came as the silicon giant reported disappointing earnings, was largely in line with the demands that the investor, hedge fund Jana Partners, had spelled out in mid-April.
Microsoft suffered its worst quarterly loss in the second quarter thanks in large part to its $7.5 billion writedown of its purchase of Nokia's devices and services business. Yet Microsoft CEO Satya Nadella said the software firm remains committed to smartphones and the broader mobile market as it prepares to unveil Windows 10, its newest operating system. He said that Microsoft would in particular focus on being more efficient in the entry-level smartphone market.
BlackBerry is cutting more jobs as the company moves to regain profitability under CEO John Chen, though it's unclear how many workers the smartphone and security software company is shedding.
Qualcomm plans to announce thousands of job cuts this week as the chipset giant faces declining prices for smartphones and rising competition from Chinese vendors, according to a report from The Information.
Microsoft CEO Satya Nadella reaffirmed his commitment to the smartphone market and said that Microsoft has a broader view of its mobile strategy than just building phones itself. The comments, in an interview with ZDNet, come a week after the software giant said it would cut around 7,800 jobs, mostly from its phone business, and record an impairment charge of around $7.6 billion related to its purchase of Nokia's devices and services business.
Microsoft said it will cut around 7,800 jobs, mostly from its phone business, and record an impairment charge of around $7.6 billion related to its purchase of Nokia's devices and services business. The layoffs and restructuring charges are the latest indication that Microsoft has not been able to gain traction in the smartphone market following its $7.2 billion deal for Nokia's handset business, which closed in April 2014.