Google will let go an additional 1,200
employees at its struggling smartphone maker Motorola Mobility, the
company said Friday.
The layoffs, which were initially reported by The Wall Street
Journal, follow a previous round of 4,000 job losses announced in
August, when a third of Motorola's production facilities were put on
the cutting block.
"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 said in a statement.
Google bought the cell-phone pioneer in 2012 for 12.4 billion
dollars after years in which Motorola had struggled to compete with
newer smartphone giants such as Apple and Samsung.
The purchase was said to be motivated by Google's desire to
acquire Motorola's valuable patent portfolio to protect itself in a
patent battle with Apple, but Google also insisted it wanted to make
cutting edge phones that would allow it to better compete with other
leading smartphone makers.
Motorola is reportedly working on a device called the "X Phone,"
which will enable it to take on the iPhone and Samsung's high-end
Galaxy smartphones. It's rumoured to feature a large battery, an
excellent camera and a durable design.
The company has failed to produce a profit since its acquisition
by Google and posted an operating loss of 353 million dollars in
2012, compared to a 152 million dollar loss in 2011.
The new round of layoffs will include job losses in the US, India
and China, and encompass over 10-per-cent of the company's current
workforce of 11,000.
An internal email published by The Wall Street Journal said: "Our
costs are too high, we're operating in markets where we're not
competitive and we're losing money."
