Lenovo Layoffs: Motorola Mobility Job Cuts Won’t Impact Data Center Push

Lenovo confirmed more layoffs in its Motorola Mobility business today, but the job cuts should not impact the company's IT channel partner programs -- including Lenovo's accelerating hyperconverged data center push, according to sources close to the company.

The latest cuts will impact less than two percent of Lenovo's 55,000 employees globally, the company said. Most of the cuts involve the company's Motorola smartphone business, the company added.

Lenovo took steps to assure Chicago-area employees that the company remains committed to that region -- where Motorola Mobility is headquartered.

Like many hardware companies, Lenovo has cut headcount in recent quarters. In late 2015, for instance, the company confirmed plans to cut 3,200 employees amid slumping PC demand and intense smartphone competition.

From Mobile to Data Centers

Lenovo acquired the Motorola Mobility smartphone business from Google for $2.9 billion in 2014. The China-based PC giant has struggled to integrate and scale the acquired business since that time.

On a stronger note, Lenovo's hyperconverged data center relationships with Nutanix and several other partners appear to be gaining momentum. Much of the company's channel focus has involved SMB data center refreshes.