Lenovo-owned Motorola has downsized its workforce, as the company is unable to compete with the growing competition.
Motorola has apparently cancelled the launch of the upcoming Moto X5, as the Lenovo-owned company seems to have scaled back its mobile releases. Android Police reports that the company is going to focus on E, G, and Z series instead. The successor to the Moto X4 was leaked earlier this year, featuring an iPhone X-like notch at the top of the display and a premium design.
The cancellation of the Moto X5 shows that the company has been facing tremendous competition from the likes Apple, Samsung, and Xiaomi, among others. Motorola recently confirmed that the layoffs in its Chicago office but also clarified that it is committed to the Moto Z lineup, the company’s answer to Samsung’s Galaxy S series. Further, it’s being speculated that Motorola is changing its approach towards the Moto Mods – swappable accessories for the Moto Z smartphones. Instead of releasing random Moto Mods, the company will only focus on those that it “believes can actually turn a profit”.
Android Police states that about 190 people will be affected in the Chicago office. While9to5Google claims as much as half of the workforce at the Chicago office is affected, with April 6 being the last day at the job. Another smartphone maker HTC had sacked a large portion of its workforce from the US office.
“In late 2017, Lenovo announced a worldwide resource action that would occur over the next several quarters, and impacting less than two percent of its global workforce, said Motorola in a statement to 9to5Google. This week’s employment reductions are a continuation of that process. We are reducing our Motorola operations in Chicago however this did not impact half of our workforce there and our Moto Z family will continue”.
At the moment, there is no confirmation on the launch of the upcoming lineup, which includes the Moto G6, Moto Z3, and Moto E5. But for now, the future of Motorola seems to be uncertain. Chinese PC maker Lenovo bought Motorola from Google for $2.91 billion in 2014.
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