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Google’s Motorola Mobility to cut 10% of workforce

Google’s Motorola Mobility is to cut 1,200 jobs – 10% of its global workforce.

The announcement comes just six months after Google revealed that it would slash 20% of the Motorola workforce as it moved away from feature phones to focus on smart devices.

Employees were notified of the latest cuts this week via an email that said, "While we're very optimistic about the new products in our pipeline, we still face challenges," according to the Wall Street Journal, which first reported the cuts.

The email said the cuts would focus on markets where the company is not competitive and is losing money, and would affect workers in the US, China and India.

Motorola Mobility reported operating losses of $500m and $350m in the last two quarters of 2012.

In a statement, the company said the cuts were a continuation of the reductions announced last August, just a year after Google announced its $12.4bn deal to acquire the company.

Many analysts said Google paid a premium for the company to get access to its patent portfolio, which Google has since used extensively to defend its Android operating system in legal battles.

Since the acquisition, Google has been seeking to cut costs. Last October, Google warned of further restructuring after admitting that it would incur costs of $300m in “severance-related charges”.

In addition to the job cuts, Google sold set-top box business Motorola Home to the Arris Group for $2.35bn in December 2012.


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