Google will cut 4,000 Motorola Mobility jobs as part of a restructuring plan, a Google spokeswoman has said.
This is the equivalent of 20 per cent of Motorola Mobility's workforce, which was bought by parent company Google for $12.5bn last year.
Nearly one-third of the company's offices worldwide will be shut.
"Motorola is committed to helping them [the employees] through this difficult transition and will be providing generous severance packages, as well as outplacement services to help people find new jobs," the Google spokeswoman said.
The world's most popular search engine provider agreed to buy Motorola Mobility last year, aiming to use Motorola's patents to fend off legal attacks on its Android mobile platform and expand beyond its software business.
Google had previously reserved its comments on Motorola Mobility's future but is now outlining the first steps to turn the company around, with planned job cuts and scaled-back operations.
One-third of the jobs lost will be in the United States, but the company has not specified where or which facilities would be affected.
Earlier the New York Times reported Google's plan and said it was looking to shrink operations in Asia and India, both by exiting unprofitable markets and stopping production of low-end devices and focusing on a few mobile phones instead of dozens.
Motorola Mobility, which has 94 offices throughout the world, will focus research and development in Chicago, Sunnyvale, California and Beijing.
In addition to the planned cuts, Google has reduced the size of Motorola Mobility's management, letting go 40 per cent of its vice presidents, but also hiring new senior executives, the New York Times said.