Motorola Mobility, acquired by internet giant Google, today said it has decided to suspend its operation in Chennai centre as it was identified that there would be "no production requirement from it" in future.
“On Monday we began informing 76 employees of our customer fulfillment centre in Chennai of our plans to suspend the operations indefinitely as of February 2013", Motorola Mobility, Corporate Communications (Asia Pacific), Director, William Moss said.
"We know this is difficult for our colleagues who are impacted, and we are working with them to settle all dues, provide relief packages and to help them find other opportunities", he said.
Noting that this move was taken as part of "streamlining" of the company's supply chain activities, he said, "we are now fulfilling customer orders directly from factories, and we have no current or forecast production requirements that would require the continued use of our Chennai facility".
Observing that the decision was taken after analysing several options to keep the plant under operations, he said, "this decision (to suspend the operations) only affects the Chennai customer fulfillment centre".
"We continue to maintain our R&D centres for mobile devices and home business, Corporate IT and other corporate functions in India", he said.
The company had invested over Rs 150 crore at the plant employing 76 people. Last year, Motorola Mobility was acquired by Google Inc for USD 12.5 billion
According to reports, Motorola Mobility has proposed to cut down its operations in India and lay off 4,000 employees globally as part of its restructuring plans.