When big tech companies are acquired by even bigger tech companies, the transition of ownership can be bumpy for staff. And this is what 800 employees of Motorola Mobility are about to find out.
It was only a few months ago that Google announced plans to acquire the mobile arm of Motorola. At the time of the planned acquisition there was little talk of downsizing, streamlining or sustainability, but now the full impact of the acquisition is becoming clear. The announcement of the impending layoffs was made in a regulatory filing made recently by Motorola Mobility and was part of the preparations for the full takeover by Google.The 800 layoffs represent around 5% of the total employee strength at Motorola Mobility and in a statement released by Motorola spokesperson, Jennifer Weyrauch-Erickson; the layoffs were considered part of the continued effort to “focus on improving its financial performance by taking actions to manage the company’s costs.” This of course will do little to placate the 800 workers who will now have to find jobs to look after their families.
There’s some silver lining though for the 800 workers because according top the filing, over $27 million to cover severance costs associated with the acquisition. These workers may be losing their jobs, but at least they’ll get something to tide them over till something crops up.
Do you think laying off 800 workers to facilitate an acquisition is immoral? Share your views in the comments below.
source: http://www.sitetrail.com/2011/11/05/motorola-lays-off-800-employees/