It has only been a few months since Google (GOOG) completed its acquisition of Motorola Mobility, however The New York Times is reporting that the Internet giant has notified employees about a huge round of upcoming layoffs. Google will eliminate 20% of Motorola’s workforce according to a regulatory filing, a third of which will come from its U.S. operations. Google will also close a third of Motorola’s 94 offices worldwide. More →
Research in Motion (RIMM) in June reported the worst quarter in the company’s history, and announced plans to reduce its global workforce by 5,000 people. According to Cantech Letter, the troubled smartphone manufacturer will let go of 3,000 workers on August 13th, mainly from its customer service, human resources, marketing, non-enterprise sales and Global Repair Services departments. Employees who are working on the upcoming BlackBerry 10 operating system and those in an enterprise sales position are reportedly “safe” from the layoffs, which the company hopes to complete before the end of its second quarter on August 31st. RIM’s first BlackBerry 10 smartphones, which are seen as the company’s last chance at a revival, are expected to arrive sometime in the first quarter of 2013.
Best Buy plans to lay off approximately 2,400 employees according to a recent report. Dow Jones Newswires on Friday reported that Best Buy will soon dismiss as many as 2,400 workers including 600 Geek Squad representatives. Best Buy acquired Geek Squad, its PC repair arm, in 2002. “We are working to minimize the impact of the changes on employees while building the foundation for a strong future,” a Best Buy spokesperson told Dow Jones Newswires. Best Buy had 167,000 full-time employees at last count, including about 20,000 Geek Squad reps. The company announced during its fourth-quarter earnings call that it planned to close 50 U.S. stores as part of a cost-cutting effort. More →
Research In Motion will reportedly lay off at least 2,000 workers as the company struggles to regain its footing in a smartphone market dominated by just two vendors. RIM added two new executives earlier this month, chief marketing officer Frank Boulben and chief operating officer Kristian Tear, but the Waterloo, Ontario-based smartphone maker is now preparing to make more drastic moves in an effort to cut costs, The Globe and Mail reported. The restructuring may begin in the next two weeks according to the report, and more than 10% of RIM’s global workforce of approximately 16,500 will be affected. RIM’s smartphone business has declined rapidly in the past few years as Apple and Samsung have risen to dominate the industry. In the first quarter this year, Apple is estimated to have accounted for 80% of global smartphone profits among major vendors while Samsung took in the remaining 20%. RIM plans to respond in the fourth quarter with the launch of its first BlackBerry 10-powered smartphone, code-named the BlackBerry London. More →
Sony on Thursday confirmed earlier rumors suggesting plans to release 10,000 workers during the course of fiscal 2012. The figure includes employees expected to leave Sony as part of various business sales, however. The move, which is part of a larger effort to restructure and cut costs, will result in a 6% workforce reduction. The Japan-based consumer electronics giant has been in decline for years, and the company said earlier this week that it will report a worst-ever $6.4 billion loss when it posts its full-year earnings for the fiscal year ended March 31st. Sony plans to right the ship by strengthening its position in the digital imaging, gaming and mobile markets, turning around its TV business, addressing emerging markets more aggressively, “creating new businesses and accelerating innovation,” and selling off a number of divisions as it streamlines operations. As a result of its efforts, the company hopes to achieve a 5% operating margin on $105 billion in revenue and a 10% return on equity in fiscal 2014. Sony’s full press release follows below. More →
Sony will reportedly cut 10,000 jobs, or roughly 6% of its global workforce, in an effort to bring the electronics giant back to profit, Nikkei reported on Monday. The majority of the layoffs will apparently come from consolidating the company’s chemicals and small and mid-size LCD operations, and are expected to be made over the next two years. The report claims Sony’s new CEO Kazuo Hirai will announce his restructuring plan on April 12th, and the company may also ask seven executive directors, including Hirai and former CEO Howard Stringer, to give up their bonuses for the fiscal year that ended in March. Sony has denied the report. More →
Yahoo on Wednesday confirmed plans to lay off more than 2,000 employees as part of new cost-cutting efforts. The Internet giant currently employs approximately 14,000 full-time workers and several thousand more contractors. The workforce reductions will be spread across a number of units within Yahoo including its product division, local business unit, marketing division and research and development division. “Today’s actions are an important next step toward a bold, new Yahoo! — smaller, nimbler, more profitable and better equipped to innovate as fast as our customers and our industry require. We are intensifying our efforts on our core businesses and redeploying resources to our most urgent priorities. Our goal is to get back to our core purpose — putting our users and advertisers first — and we are moving aggressively to achieve that goal,” said Scott Thompson, CEO of Yahoo!. “Unfortunately, reaching that goal requires the tough decision to eliminate positions. We deeply value our people and all they’ve contributed to Yahoo!.” Yahoo plans further cuts in the coming months, and the company’s full statement on the layoffs follows below. More →
T-Mobile is looking to restructure the company and in doing so, it will cut 5% of its workforce and closing seven call centers over the next three months, The Wall Street Journal reports. The carrier said the job cuts were necessary and will help fund its planned $4 billon 4G LTE network. As both Verizon and AT&T continue to add subscribers, T-Mobile shed 1.7 million customers last year alone. “The customer base is less and the call volume is lower,” said Cara Walker, a spokeswoman for the carrier. “This is an effort to optimize our operations.” The spokeswoman declined to disclose how much T-Mobile expects to save annually by cutting approximately 1,800 jobs, however, instead commenting that further cuts wouldn’t impact the remaining 17 call centers, engineers, technicians or salespeople in T-Mobile’s retail locations. More →
Nokia on Thursday announced that it will cut as many as 1,000 jobs at its plant in Salo, Finland. The company’s layoffs will happen gradually through 2012, with most cuts happening by the end of June, Reuters reported. The Salo plant is the last large cell phone manufacturing plant in Western Europe, as most businesses have moved their manufacturing to Asia. Last month, Nokia shed 2,300 workers from a plant in Komarom, Hungary and 700 others in Reynosa, Mexico as it too shifted much of its manufacturing to China. This new round of layoffs comes as part of a larger effort to cut costs following the €1 billion loss the company reported last quarter. More →
Approximately 3,000 people could lose their jobs following the shuttering of Verizon call centers in Texas, Michigan and Washington state. Local ABC affiliate ABC 13 reported on Thursday that up to 1,000 workers may be released as Verizon moves its call center out of the Houston, Texas region. Verizon will close call centers in Michigan and Washington as well, impacting a total of about 3,000 workers. It is unclear if the carrier intends to open new call centers to replace the shuttered facilities, or if it will look to increase head counts at other existing call centers. Verizon said in a statement that the closures are “a very difficult but necessary business decision,” and a company spokesperson confirmed to ABC 13 that it will find new jobs within the company for workers willing to relocate, though it is unclear if Verizon plans to cover relocation expenses. The carrier also said it will pay a severance to employees who do not secure new jobs within the company.
UPDATE: A Verizon Wireless spokesperson contacted BGR to clarify a number of inaccuracies and omissions in ABC 13′s report. The company does not plan to open new call centers following these three closures, however it will continue to operate 28 call centers across the country. 2,600 workers will be affected by shuttering of the facilities in Texas, Michigan and Washington, however all employees have been invited to relocate. Verizon will pay employees who move to new centers $10,000 in after-tax dollars to relocate, and workers who do not continue with the company will be provided with separation benefits. More →
LightSquared announced on Tuesday that the company plans to cut its workforce by 45% in an effort to cut costs. “This and other cost savings measures will allow LightSquared to continue to navigate the regulatory process as it works with the appropriate government agencies to find solutions to the GPS interference issue and bring its $14 billion privately funded wireless broadband network to more than 260 million Americans,” the company said in a statement to Reuters. Last week, the FCC announced that it would block the company’s planned 4G LTE network due to issues concerning GPS interference. LightSquared currently employs 330 people and according to Reuters, the company is not currently considering bankruptcy. More →
Nokia plans to eliminate 4,000 jobs as part of a major cost-cutting effort that will see much of its manufacturing shift to Asia. The cuts will be made across three Nokia plants — 2,300 workers will be shed in Komarom, Hungary, 700 will lose their jobs in Reynosa, Mexico and 1,000 more in Salo, Finland will be laid off. Each of the three plants will continue to operate at reduced capacities, and the move is part of a larger effort to cut costs following the €1 billion loss Nokia reported last quarter. “Shifting device assembly to Asia is targeted at improving our time to market. By working more closely with our suppliers, we believe that we will be able to introduce innovations into the market more quickly and ultimately be more competitive,” Nokia EVP of Markets Niklas Savander said in a statement. “We recognize the planned changes are difficult for our employees and we are committed to supporting our personnel and their local communities during the transition.” Nokia’s full press release follows below. More →
Yahoo has frozen its hiring process and may even consider layoffs according to a new report. The news was revealed by AllThingsD on Thursday, which wrote that the choices were made ahead of expected weak fourth quarter earnings. Yahoo isn’t considering mass layoffs, however; instead, AllThingsD said they are likely to be “small and selective” if they happen at all. Yahoo experienced a bit of turmoil earlier this week when co-founder, former CEO and board member Jerry Yang resigned from the company. AllThingsD said other board members may be considering leaving the company, too. Yahoo will report its fourth quarter earnings next Tuesday. More →