BEIJING (dpa-AFX) - Chinese mobile maker Lenovo Group Ltd. (LNVGY.PK) has laid off hundreds of employees at its Motorola Mobility smartphone business. The layoffs represent less than 2 percent of the company's global workforce of about 55,000, according to Lenovo.
Lenovo said that the layoffs are part of the ongoing strategic integration between Lenovo and its Motorola smartphone business as the company streamlines its product portfolio to best compete in the global smartphone market.
'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 said.
Lenovo also confirmed it will retain Motorola Mobility's headquarters in Chicago, noting that Chicago has a 'well-deserved reputation for technical excellence.'
Lenovo acquired Motorola Mobility in 2014. Last year too, Lenovo announced some massive layoffs, amid lower PC demand and increased smartphone competition. The layoffs at that time included former Motorola President Rick Osterloh, who now heads the hardware division at Google.
Earlier this year, Lenovo said its integration efforts relating to Motorola did not meet expectations, noting that product transition was not successful in North America.
Copyright RTT News/dpa-AFX