Following on the heels of the reduction of 4,000 jobs last summer, Google has announced that it will again reduce the workforce at Motorola Mobility, this time eliminating 1,200 positions. The cuts will affect staff in the U.S., China and India.
Reuters reported, “Google’s Motorola Mobility unit is to shed another 1,200 jobs or 10 percent of its workforce as the smartphone maker tries to return to profitability, Google said on Friday. 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.”
USA Today quoted a Motorola spokesperson, who said, “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.”
TechCrunch’s Romain Dillet added, “Employees in the U.S., China and India will be affected. Since the acquisition, many Google executives have changed position to help run Motorola. But the turnaround hasn’t happened yet.”
CNNMoney’s David Goldman observed, “Google has preached patience in its turnaround effort of Motorola. When the search giant completed its $12.5 billion purchase of Motorola in May 2012, it inherited a product pipeline of about 18 months. That means Google hasn’t yet been able to release Motorola-branded smartphones of its own design. Meanwhile, Motorola’s mobile business continues to bleed red ink. It lost $353 million in the fourth quarter of 2012, and Google’s Chief Financial Officer Patrick Pichette has said he expects Motorola’s financial results will be volatile ‘for quite awhile.'”