Google has decided to close the subsidiary of Motorola in Spain later this year due to the deterioration of the Spanish economy and the unfavorable prospects for domestic consumption, which will affect the mobile device market.
The search company and Internet services, which Motorola acquired last May as part of its business diversification policy, European strategy will focus on three major markets in terms of turnover (Germany, UK and France), increasing share obviating the handset maker was making in the Spanish market, which currently exceeds 3%.
In operators like Orange, Motorola already had a 10% market share, and Vodafone and Movistar also presented new range devices ‘Razr’. In absolute levels, Spain is the European country in which Motorola sells more units .
The retreat from their positions in Europe also mean leaving the company of other markets in the euro periphery, such as Greece, Italy or Portugal, but also in countries such as Poland, Czech Republic and Scandinavia. Motorola’s workforce in Spain consists of about 50 employees.
According to published newspaper Friday ‘Expansion’, this story progresses, the decision means that as of December 31 phones that Motorola Mobility manufactures disappear from the shelves of Spanish distributors, while keeping all aftermarket services.
Google, which completed last August to buy Motorola Mobility for a total of 12,500 million dollars in cash (9,800 million euros), which shall then confirmed the closure or consolidation of the third of the 90 manufacturing that its subsidiary has spread around the world.
This restructuring plan will involve a workforce reduction and affect 4,000 employees, about 20% of the total workforce of Motorola.
Google said that “two thirds of the workforce reduction will take place outside the U.S.”, while pointing out that this decision is related to its plans to simplify telephony devices portfolio company to emphasize the production of those most innovative and profitable mobile.
Google acquired Motorola Mobility last May by 12,500 million dollars (10.245 million euros), after the company co-founder Larry Page is done with the reins of the popular search engine last year.