Google planning to shut down Motorola Spain

Google has decided to close the subsidiary of Motorola in Spain until the end of this year after seeing a decreasing hike in Spanish economy and the unfavourable prospects for domestic consumption, which will affect the mobile
device market, according to reports.

The search engine company, which acquired Motorola last May as part of its business diversification policy, will focus on three major markets in terms of turnover (Germany, UK and France).

The retreat from their positions in Europe also means that the company is leaving other markets in the euro periphery, such as Greece, Italy or Portugal, but also in countries such as Poland, Czech Republic and Scandinavia. Motorola’s
workforce in Spain consists of about 50 employees.

The decision means that as of December 31, the Motorola phones will disappear from the shelves of Spanish distributors despite buying Motorola Mobility for a total of 12,500 million dollars in cash (9,800 million Euros) earlier
last year.

Google had to take this step according to their new restructuring plan that involves a workforce reduction of 4,000 employees, a figure that is 20% of the total workforce of Motorola.

Google said that two thirds of the workforce reduction will take place outside the U.S. while pointing out that this decision is related to their plans to simplify telephony devices Portfolio Company to emphasize the production
of profitable mobiles.

"These changes are designed to return the Motorola phone unit to profitability after they lost money in fourteen of the last sixteen quarters," The search engine company, which considers these measures essential for Motorola
to achieve sustainable profitability, was quoted as saying.

Motorola is one of the major U.S. technology companies that have driven the mobile revolution and which has a history of over 80 years of innovation, including the creation of the first cell phone in 1983.

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Posted by Farasat Ali on Sep 19 2012. Filed under Sci-Tech. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry