Google is cutting 1,200 jobs from its Motorola Mobility operating unit, or about 10% of its workforce, according to an email obtained by the Wall Street Journal. The move follows another round of layoffs less than a year ago where the company let go 4,000 employees and comes in an effort to cut costs in markets where they are not being competitive. It will affect workers in the U.S., China and India.
"These It's obviously very hard for the employees concerned, and we are committed to helping them through this difficult transition," a company spokesman said regarding the cuts.
Google completed its $12.5 billion aquisition of Motorola Mobility last May. A war chest of over 17,000 patents was apparently a big part of the search giant's focus, which would help them fend off an increasing number of lawsuits against Android partners. But when it comes to actual devices hasn't produced anything meaningful yet and since the acquisition it has continued to show operating losses as its market share wanes.
During a January earnings call, Google said its Motorola division is a work in progress, while reminding everyone that they "inherited 12-18 months of product pipeline" that they have to work through.
Regarding strategy Google has said Motorola will shift its focus from building multiple low-end smartphones and instead concentrate on fewer “more innovative and profitable devices”. No specifics have been offered besides Google CEO Larry Page throwing a few hints about the rumored X Phone.
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