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Motorola to cut Korea connection

Posted: 12 Dec 2012 ?? ?Print Version ?Bookmark and Share


Motorola Mobility unveiled plans earlier this week to close down a chunk of its operations in Korea, including consumer mobile device marketing and R&D, by next year as it forges on with its global restructuring efforts.

Several reports indicate that the primary reason for the pull out is that the telecom firm continues to struggle against native Samsung Electronics and LG Electronics for a share in the country's bustling smartphone market. It appears to have lost the fight.

Motorola is currently reorganising its R&D units worldwide as it determines which markets it can successfully target. It will retain two business units in KoreaiDEN Networks wireless networks and set-top boxand will continue providing warranty and after-sales support for its customers.

Motorola's exit from Korea echoes Google's announcement back in August that it would cut 4,000 jobs and close one third of its 94 offices worldwide. (See Google to trim Motorola staff by 20%.) Employees at Motorola Mobility's Beijing office went as far as protesting the job cuts which prompted the company to increase its severance package offer. (See Motorola raises compensation for laid-off Beijing workers.)

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