Motorola to Shut Down Chennai Cellphone Factory; Shut South Korean Operations

Google owned Motorola Mobility, the popular manufacturer of mobile phones had a few days ago announced its exit from the Indian market as a part of a global restructuring process. Back then we knew that this move would affect the offices that Motorola had established in India and the employees working there. However, we now have news coming in that Motorola is also planning to shut down its manufacturing facility at Chennai.


The fairly new mobile phone manufacturing unit started in 2008 and was set up by Motorola for an investment of 172 crores. 72 employees working at the facility would be affected by this decision and it is more or less confirmed that they would be laid off. The Times Of India contacted William Moss, spokesperson for Motorola Mobility who confirmed to them that the decision to shut down the facility has come as part of what Motorola calls a “global supply chain streamlining” that the company is doing now. He added that currently they do not have current or future production requirements that would make them use the Chennai facility.

Note that this was not a full-fledged manufacturing unit. This facility is what Motorola calls a “customer fulfilment centre” the job of which is to install software on phone models and customise the phone packaging according to local requirements.

Motorola added that they are fully aware of the apprehension that existing employees at the facility might be having and has assured that all their dues would be settled and effort would be made to help them find alternative opportunities.

In related news, Motorola has also decide to quit the advanced smartphones market of South Korea. The move again, is a part of the global restructuring plan that Motorola has undertaken. The news about the pull-out from Korea was leaked from an internal memo in Korean that was sent across to employees.

The exit of Motorola from South Korea will make it the second major mobile phone maker after HTC to exit that market.

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