Looks like Google owned Motorola Mobility is in a hurry to make a hasty retreat from markets where its devices are not doing well. Not too long ago, the company announced its decision to curtail as many as 4000 jobs when it would close a total of 90 offices globally. One of the major markets that Motorola decided to exit was India. An official notification announcing their exit from that market was issued a few days ago. It is now the turn of South Korea now.
If we are to believe a leaked internal memo, Motorola is planning to shut down most of its South Korean operations by 2013. The memo says that the move is a part of the now well known “restructuring” effort by Google which had earlier in 2012 bought Motorola for $12.5 billion. The pull-out from South Korea is estimated to affect as many as 500 employees. These employees have been promised compensatory redundancy packages so that their transition is a smooth process.
Motorola is not the first major brand to exit the very developed South Korean market. Earlier this year, Motorola’s smartphone making rival HTC also decided to exit the market. Another major brand to exit South Korea was web portal giant Yahoo which also announced its exit earlier this year.
Motorola however will have “some” presence in South Korea with a company spokesperson confirming that 10% of its Research and Development staff would be retained. The company however would no longer sell smartphones there or even market existing ones.
What do you think about this hasty retreat by Motorola from two of the major and the biggest mobile phone markets in Asia?