Google to cut further 1,200 jobs at Motorola Mobility

8 March 2013
By Sofia Mitra-Thakur
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Google's Motorola Mobility is to shed 10 per cent of its workforce

Google's Motorola Mobility is to shed 10 per cent of its workforce

Google's Motorola Mobility unit is to shed another 1,200 jobs or 10 per cent of its workforce as the smartphone maker tries to return to profitability, Google said.

The lay-offs come on top of the 4,000 jobs cut at Motorola Mobility in August as Google seeks to make more smartphones and fewer simple handsets.

"These cuts are a continuation of the reductions we announced last summer," spokeswoman Niki Fenwick said. 

"It's obviously very hard for the employees concerned, and we are committed to helping them through this difficult transition," she added.

The Wall Street Journal reported the lay-offs this week, citing a company email.

The email about the job cuts, which will affect workers in the United States, China and India, said "our costs are too high, we're operating in markets where we're not competitive and we're losing money," according to the Journal.

Google bought the money-losing mobile phone maker for $12.5bn last year, its largest acquisition ever, aiming to use Motorola Mobility's armoury of patents to fend off legal attacks on its Android mobile platform and expand beyond its software business.

But the acquisition raised concerns on Wall Street that Google was entering a business with much lower profit margins.

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