Skip to main content

Lenovo plans to move more of Motorola's operations to China

(Image credit: Image Credit: Ken Wolter / Shutterstock)

Since acquiring Motorola back in 2014, Lenovo has laid off more that 1,100 people at the company, or around 2 per cent of its global workforce of 55,000.

After purchasing the mobile device manufacturer from Google, Lenovo has let go numerous employees from the company including the former President of Motorola Rick Osterloh, who now rungs Google's hardware division.

Recently a Motorola employee posted on Facebook that Lenovo was now letting him go as the Chinese company is planning to move even more of its operations to China. However, it has confirmed that Motorola's headquarters will remain in Chicago despite its recent streak of relocating the mobile device maker's operations to its home country.

A Motorola representative shed light on Lenovo's decision, saying: “Lenovo is absolutely committed to Chicago and we plan to maintain our Motorola Mobility headquarters there. Chicago has a well-deserved reputation for technical excellence, and as the hub of our global R&D for our smartphone business, we expect to take advantage of local talent to continue developing Moto products there.

"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.”

Lenovo has justified its recent wave of layoffs as part of its strategy to better help integrate Motorola's smartphone business into Lenovo. The company is also currently trying to “streamline” products for the global smartphone market.

Earlier this year, Lenovo was displeased with how it had attempted to integrate Motorola into its business and said that its efforts “did not meet expectations.” Motorola's smartphone shipments in China declined by a surprising 85 per cent but the company feels that it has learned from the mistakes it has made so far.

Motorola is currently in the processing of rectifying these mistakes and one of the ways it plans to do so is with a corporate structure that splits the company's US and Chinese dealings between two co-presidents. 

Image Credit: Ken Wolter / Shutterstock

Anthony Spadafora
After living and working in South Korea for seven years, Anthony now resides in Houston, Texas where he writes about a variety of technology topics for ITProPortal.