Google is expected to cut around 4,000 Motorola Mobility staffs with an aim to streamline the wireless business mobile-phone making business process.
It was last year when Google bought the Motorola Mobility for the largest amount of around $12.5 billion. Google Inc's android platforms paired with the Motorola's smartphone and this merging was expected to be a major challenge for the Apple's iPhone. Motor Razr is the last successful android smartphone introduced by Motorola since 8 years.
4,000 employees-slashing is considered to be the biggest layoff planned by Google Inc so far. Google commenced its business in 1998. Ever since then, all its products have been successfully reaching out to people worldwide. Motorola, founded in the year 1928, had recently fallen 14 quarters out of total 16. And this issue had raised concerns over the collaboration of higher and lower profit businesses. Finally, Google had declared its layoff plan on Monday.
Google told, "These changes are designed to return Motorola's mobile devices unit to profitability, after it lost money.While lower expenses are likely to lag the immediate negative impact to revenue, Google sees these actions as a key step for Motorola to achieve sustainable profitability."
Google reported that Motorola Mobility is expected to shut a third of its worldwide ITS offices with regards to the deal. The Main R&D operations of Motorola Mobility are carried out in California, Chicago, Beijing and Sunnyvale. Google focuses on restructuring the business to simple phones and smart-phones.
Being ranked in the #1 spot for its search engine services, Google is now framing up the first idea to drift its business around, resulting in the 20% Motorola Mobility workforce cut. Various analysts across the globe had expressed that this layoff is an unexpected news from Google Inc.
Rick Summer, Morning Star analyst, had told "I think it's still going to be challenging to navigate the waters (of the handset business); how do you keep your partners happy and how you push your own smartphone devices at the same time,"
Anyway, the future holds about the services and sources that could possibly be affected.