Lenovo Announces More Layoffs That Hit Motorola’s Chicago Office
Motorola’s Chicago office has not fared well since the company was acquired by Lenovo. After the acquisition of Motorola, they knew an upcoming financial report would be in the red, so they announced a restructuring plan. The company then laid off 500 employees in Motorola’s Chicago office, and then two months later the company announced they would be laying off another 200 people. All in all, 2015 was not very good for Motorola’s once-booming office in Illinois.
A month after this second batch of layoffs were completed, Lenovo published their first quarterly loss in 6 years. The company was able to increase overall revenue by 16% compared to the year before, but it just wasn’t enough. Out of $12.2 billion in revenue for the quarter, Lenovo ended up with a net loss of $714 million. 2016 hasn’t been a great year for Lenovo either as the company is still bleeding money from its smartphone division.
Overall, they have been able to bring in a profit this year thanks to their restructuring plan, but things are just not looking too comfortable when you isolate their smartphone business. Last month, the CEO of Lenovo say they’re predicting a complete turnaround sometime around 2017 and 2018. He says it takes time to integrate the new mobile business and compares it to how long it took them to integrate the PC business.
However, this transition period has not been steady for Motorola’s Chicago office. The company has just confirmed they are going through another round of layoffs an says less than 2% of their entire 55,000 person staff will be effected. However, sources close to Droid Life are saying that out of the 1,200 employees left in Motorola’s office, over 700 will be let go. Lenovo’s official statement says they are “absolutely committed to Chicago,” and that this is just part of the “ongoing strategic integration between Lenovo and its Motorola smartphone business.”Source: Droid Life