Job cuts begin at Motorola as it separates mobile devices

And so the slashing begins …

Reports out today state that Motorola will shutter its Singapore cell phone manufacturing plant and layoff some 700 employees as it moves forward with plans to separate its mobile devices business.

The move will bring Moto’s headcount in Singapore down to about 1,800 after mobile phone production there is shut down and comes as part of a $500 million savings plan for the struggling company.

Moto, which is keeping its broadband and mobility solutions business as it splits into two companies and spins out its mobile devices unit, will keep the Singapore office as its Asia-Pacific operational headquarters. The country is a significant site for Moto’s regional management functions and software development activities, according to the company.

The “phased transition” will see Moto move its mobile phone manufacturing operations from Singapore to other company-owned facilities worldwide. Moto will start phasing out the mobile phone plant’s operations in Q2 with completion expected by the end of the year, reports state.

So far, India-based consumer electronics maker Videocon is rumored to be a suitor for Moto’s handset unit. The company has mobile phone licenses for 22 circles in India and a retail network of about 1,000 stores, which could make the potential buy a good fit, especially in the high-growth wireless market of India. Still, the possible deal isn’t getting thumbs up from Videocom critics, who are concerned that the company may be taking on more than it can chew with Moto’s dismal US-based mobile business.

For more of EDN’s coverage of the Moto separation, see:
Is Motorola’s split enough to reignite innovation?
Motorola spins out mobile devices business
Moto splits in two, what will Carl Icahn do with all his free time?
and Motorola looks to private equity as it replaces more execs.

And for a humorous take on tech company layoffs, see Cisco doesn’t fire people; they allow ‘involuntary attrition’ from EDN’s Anablog, a blog brought to you by the very witty mind of technical editor Paul Rako. In the post, one reader, who only identifies himself as “T,” comments on Moto’s "RPA" (Relative Performance Assessment) policy.

As always, comments are welcome. Share your thoughts on Moto’s handset business, production shuttering, or anything else below. 

–Suzanne Deffree, Managing Editor, News