India, Manufacturers

Motorola suspends operations at India factory, cuts 10% of workforce globally

Motorola has suspended the operations at its Chennai phone-making factory indefinitely as it cuts 10pc of its headcount globally.  According to a report in WSJ, Motorola is laying off about 1200 of its employees as a part of global cost-cutting.

76 India job cuts are part of the same cost-cutting, but there is no word on whether company wants to wipe out its entire employee-base in the country. We first heard about the Chennai plant closing in December last month, when company revealed that plans to close down this factory.

Motorola has suspended production in Chennai factory from the end of last month, a Motorola spokesman told WSJ.  This Chennai factory was established in 2008 and Motorola starting cutting operations at this factory soon after it was acquired by Google.

The latest round of global jobs cut follow the 4,000 employee lay off that began in August last year.

“These cuts are a continuation of the reductions we announced last summer. It’s obviously very hard for the employees concerned, and we are committed to helping them through this difficult transition,” a Motorola spokesman told WSJ.

WSJ adds:

Motorola staffers were informed by the company via email this week that “while we’re very optimistic about the new products in our pipeline, we still face challenges.” The company email added that “our costs are too high, we’re operating in markets where we’re not competitive and we’re losing money.” The layoffs will affect workers in the U.S., China and India.

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