Lenovo to fold mobile arm into Motorola Mobility

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Smartphone division will be ran under Motorola umbrella, eventually closing Lenovo Mobile

Lenovo has announced plans to merge its existing smartphone operations into Motorola Mobility, which it bought for £1.82 billion last year.

According to reports, the Chinese manufacturer said it will progressively move all of its smartphone operations under the Motorola umbrella, before axing Lenovo Mobile altogether.

Part of this process has seen Motorola President Rick Osterloh appointed as leader of the companies combined mobile group, the company told NDTV Gadgets.

Lenovo recently announced plans to restructure the business after it saw profits almost halve opn the previous year for the three months leading up to June 30.

The restructure will also involve job cuts, with 3,200 roles facing the axe in an attempt to make annual savings of $1.35 billion.

A statement from Lenovo said: “With tough markets and results that missed expectations, Lenovo is taking broad, decisive actions to realign businesses, cut costs and return to sustainable, profitable growth. Specifically, Lenovo is restructuring its Mobile Business Group (MBG) to align smartphone development, production and manufacturing and better leverage the complementary strengths of Lenovo and Motorola to quickly drive growth.

“To create a faster, leaner business model we will leverage our global sales force across Lenovo, and will accelerate the work already well underway to maximize efficiency in our global supply chain.

“Under our new organization, we will continue to drive both Lenovo and Motorola branded smartphone growth across the world. We will deliver both brands to meet market needs in different countries and for different customer segments.

“MBG will continue to drive Lenovo’s overall mobile business, but will now rely on Motorola team-mates to help design, develop and manufacture smartphone products. Effective immediately, Rick Osterloh, formerly president, Motorola, will be the leader of the combined global smartphone business unit. Osterloh will continue to report to Chen Xudong, senior vice president, and president, Lenovo MBG”

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