Lenovo to cut more than 1,000 jobs, primarily from Motorola

Source: Flickr user Karlis Dambrans

Lenovo said it will cut more than 1,000 jobs primarily from its Motorola Mobility business “as the company further aligns its organization and streamlines its product portfolio to best compete in the global smartphone market.”

The Chinese parent company confirmed to FierceWireless that the move would affect “less than two percent” of its worldwide workforce of 55,000 people, or 1,100 jobs. The layoffs are part of a broader effort to improve the bottom line.

“The company is also making adjustments in other areas of the business as part of a continued effort to manage costs, drive efficiency and support ongoing improvement in overall financial performance,” Lenovo said in a prepared statement. “While these actions are never easy, they are a necessary part of our continued efforts to ensure long-term, profitable growth across all of our businesses.”

FREE DAILY NEWSLETTER

Like this story? Subscribe to FierceWireless!

The Wireless industry is an ever-changing world where big ideas come along daily. Our subscribers rely on FierceWireless as their must-read source for the latest news, analysis and data on this increasingly competitive marketplace. Sign up today to get wireless news and updates delivered to your inbox and read on the go.

Like many of its rivals, Lenovo continues to be challenged in a worldwide smartphone market where growth has slowed as major markets reach saturation and as upgrade cycles have lengthened. Last year the company announced roughly 3,200 layoffs in its non-manufacturing workforce around the world, equaling roughly 5 percent of its total headcount. In March Motorola President Rick Osterloh said he would leave the company as Lenovo restructured its organization and divided its mobile efforts into two primary business groups. And Lenovo was knocked out of the list of top five smartphone vendors worldwide in the first quarter of 2016, IDC said earlier this year, as Chinese upstarts Oppo and Vivo saw sales surge.

Lenovo appears to be gaining ground in at least one major emerging market, however. IDC reported earlier this month that the company was the second-biggest smartphone brand in terms of value in India, outpacing Apple, Micromax and Oppo with a market share of 9.1 percent.

Related articles:
IDC: Oppo, Vivo knock Lenovo and Xiaomi from top-5 smartphone vendor list in Q1
Lenovo to launch 'Moto Mods' exclusively through Verizon
Motorola President Rick Osterloh leaves as Lenovo restructures

Suggested Articles

DoCoMo believe this to be the world's first realization of this level of multi-vendor interoperability in 4G and 5G base station equipment.

At this year’s Competitive Carriers Association (CCA) annual convention, both FCC officials and Huawei executives were on-site addressing network security in…

Deploying 5G outdoors is one thing, but for indoor 5G deployments, the complexity expands exponentially by the fragmented nature of stakeholders involved.