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Motorola axes 800 employees

Zen Terrelonge
Motorola axes 800 employees

Takes a razr to its headcount.

Motorola has been forced to make 800 employees redundant as a cost-cutting decision following a series of weak profits, according to Bloomberg.

The manufacturer is struggling to compete with the likes of Apple, Samsung, HTC and BlackBerry among the smartphone elite.

Moto says it has seen smartphone shipments and revenue grow but, despite this, it is still making a loss.

The report claims that although the step will save money in the long run it will cost approximately $31 million in severance pay and facility closures.

Jennifer Weyrauch-Erickson, a spokeswoman for Motorola Mobility, said: "Motorola Mobility continues to focus on improving its financial performance by taking actions to manage the company’s costs."

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Of course, there will be major changes ahead at the once-dominant US OEM, now that it is in the hands of Google. Observers will be watching closely to see what plans Google has for Moto.

Tags: motorola , google , smartphones

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