Google is laying off 10 percent of the Motorola staff worldwide as part of the latest round of cost-cutting, according to a report from the Wall Street Journal. The estimated 1,200 job cuts will be felt across its US, China and India operations.
The search giant bought struggling Motorola for $12.5 billion in 2012 — in a deal largely seen as strengthening its patent hoard — and it has embarked on a series of streamlining initiatives ever since. The company laid off approximately 4,000 employees last year, closed down of most of its international websites and withdrew from the Korean market (cutting a further 500 staff), but there is more belt tightening and financial savings being made.
Word of the latest round of redundancies came after the WSJ got its hands on a company-wide email which explained that, “while we’re very optimistic about the new products in our pipeline, we still face challenges…our costs are too high, we’re operating in markets where we’re not competitive and we’re losing money.”
A Motorola spokesman confirmed the news to TNW, but declined to provide more specific details beyond the following statement:
These cuts are a continuation of the reductions we announced last summer. It’s obviously very hard for the employees concerned, and we are committed to helping them through this difficult transition.
Motorola’s most recent financial quarters have seen the company post operating losses of $500 million in Q3 2012, and $350 million in Q4 2012.
In addition to the redundancies, Google offloaded set-top box business Motorola Home for $2.35 billion in December 2012.
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