Motorola Mobility plans to shut down nearly all of its operations in South Korea and cut 500 jobs by sometime in 2013.
Google closed on the acquisition of Motorola Mobility in May 2012, and now it wants to reposition the company as one of the top handset makers in the world, Yankee Group noted. The company will leave South Korea as a part of that goal.
This move will include shutting down research and development, as well as consumer mobile device marketing operations. A leaked internal memo revealed the details of Motorola Mobility's plan.
The company put this move in motion on Dec. 10, the memo said, and a Motorola Mobility spokesperson confirmed the planned pullout and job cuts.
“I think Google is realizing that selling an Android phone without the LG or Samsung brand on it in South Korea is a losing battle," said Carl Howe, VP of research at Yankee Group, commenting on a ZDNet article.
"With those two hardware brands very successfully carrying the Android flag among Korean-built phones, Motorola is at best fighting for third place," he added. "We think Google is smart to consolidate its Motorola Mobility development efforts and plan to return to Korea once it can show success in other markets."