After letting go 3,200 employees late last year, Lenovo is at it again. The company which acquired Moto from Google for $2.91 billion in 2014 has initiated another round of layoff which as per the company will affect “less than two percent of its approximately 55,000 employees globally.”
The news was first reported by Droid Life.
In a statement Lenovo called this move a “part of its ongoing integration with its Motorola smartphone business.”
At the time of acquisition majority of Motorola’s 3,500 employees were based in Chicago.
Lenovo, mostly known as a PC company, is trying to make a dent in the highly competitive smartphone market and it makes sense that it wants to integrate Motorola with its smartphone unit. Before the acquisition of Motorola, Lenovo had a negligible presence in the US smartphone market which increased to 5.2% last year after the acquisition as per IDC.
The Beijing-based company also face stiff competition on its own turf from companies like Huawei and Oppo.
The company also reiterated its intention to keep Chicago as Motorola Mobility headquarter. “Chicago has a well-deserved reputation for technical excellence and as the hub of our global (research and development) for our smartphone business we expect to take advantage of local talent to continue developing Moto products there,” said the statement.
“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. 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.”