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Google to Fire 1,200 Motorola Workers

March 8, 2013
motorola mobility

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."

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Source: Copyright 2013 dpa Deutsche Presse-Agentur GmbH

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