Lenovo Denies Layoffs at Motorola

Lenovo Group Ltd. has denied news reports that its mobile unit Motorola Mobility LLC is laying off staff at its U.S. headquarters.

“We are undergoing a regular organizational restructuring and staff adjustment based on the business plan for the new year,” the PC giant said in a statement to Caixin Global. “Currently, all of Motorola’s operations are moving ahead as usual, and new product launches are on schedule as planned.”

The remarks came after news media reported that Motorola’s Chicago office is laying off half of its staff as part of a plan announced late last year to reduce its global headcount by at least 2% over the next few quarters.

Lenovo acquired Motorola from Google Inc. in 2014 for $2.9 billion as it struggled against falling sales amid fierce competition from Apple Inc.’s iPhones and Samsung’s Galaxy series.

Lenovo said in the statement that its total phone sales in its third fiscal quarter, including Lenovo and Motorola brands, grew at annual rates of 90% in North America and 24% in Latin America. “In China, we plan to launch new Motorola models this year, including the Moto Z-series,” it said.

Earlier this month, the media reported Motorola plans to open 1,000 brick-and-mortar stores, dubbed “Moto Hubs,” across 100 cities in India this year. It is a move to beef up its offline sales in one of the world’s fastest-growing handset markets.

Research firm IDC said combined shipments of Lenovo and Motorola phones in India put it as the fourth-largest player in the country in the last quarter of 2017.

Contact reporter Jason Tan (jasontan@caixin.com)