Google-owned Motorola Mobility is looking to suspend operations indefinitely at its phone assembling plant in Chennai from February 2013, owing to company’s global cost cutting strategy. According to a report in Business Line the Chennai facility, which began operations in 2008 with an investment of Rs 1.72 billion, was a customer fulfilment centre undertaking finishing, packaging and software installation. William Moss, director, communication, Motorola Mobility – Asia Pacific informed that this decision would impact 76 jobs.
“The decision to close down the Chennai facility has been taken to streamline the supply chain of the company globally. We will now fulfill customer orders directly from factories, and we have no current or forecast production requirements that would require the continued use of our Chennai facility,” Moss said adding that the company’s research and development operations in Bangalore and other corporate functions in India will continue. “We know this is difficult for our colleagues who are impacted, and we are working with them to settle all dues, provide relief packages and to help them find other opportunities,” he said.
It is worth mentioning here that on 3 August, 2012, Motorola Mobility announced that it would reduce its headcount by approximately 4,000 out of a total of about 20,000 employees. Two-third of the reduction is set to occur outside US. In addition, Motorola plans to close or consolidate about one-third of its 90 facilities, as well as simplify its mobile product portfolio by shifting the emphasis from feature phones to more innovative and profitable devices.
“Motorola understands how hard these changes will be for the employees concerned and is committed to helping them through this difficult transition. Motorola will be providing generous severance packages, as well as outplacement services to help the employees find new jobs,” he added.