Google's Motorola Unit Lays Off Hundreds: 'We're Losing Money'

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More than 1,000 Motorola Mobility workers in the United States, China and India are losing their jobs, according to multiple reports this week.

The Wall Street Journal was the first with the news on Thursday, citing an email circulated within Google-owned Motorola Mobility.

Google Inc.'s Motorola Mobility unit has begun laying off workers, with plans to let go about 1,200 employees – more than 10% of the firm's workforce – The Wall Street Journal reported late Thursday, citing an internal email.

"While we're very optimistic about the new products in our pipeline, we still face challenges," WSJ quoted the email as saying. "Our costs are too high, we're operating in markets where we're not competitive, and we're losing money."

The layoffs affect 1,200 people, or 10 percent, of Motorola Mobility's work force. They come after the company last August slashed 4,000 jobs, six months after Google predicted more cuts were on the way, and in addition to the closure of one-third of Motorola offices worldwide. At least one analyst has speculated that Google doesn't seem to care whether Motorola Mobility makes money, just that the Internet search giant wants intellectual property rights. Motorola Mobility makes smartphones that run on the Android operating system and many observers said in mid-2011 when Google announced plans to buy Motorola Mobility that it was a move to preempt patent litigation.

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