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Google to cut 1,200 jobs at Motorola Mobility

The Google signage is seen at the company's headquarters in New York January 8, 2013. REUTERS/Andrew Kelly
The Google signage is seen at the company's headquarters in New York January 8, 2013. REUTERS/Andrew Kelly

(Reuters) - 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.

"These cuts are a continuation of the reductions we announced last summer," spokeswoman Niki Fenwick said in an email to Reuters.

"It's obviously very hard for the employees concerned, and we are committed to helping them through this difficult transition," she added.

The Wall Street Journal reported the lay-offs earlier on Friday, citing a company email. (http://link.reuters.com/tun56t)

The email about the job cuts, which will affect workers in the United States, China and India, said, "our costs are too high, we're operating in markets where we're not competitive and we're losing money," according to the Journal.

Google bought the money-losing cellphone maker for $12.5 billion last year, its largest acquisition ever, aiming to use Motorola Mobility's armory of patents to fend off legal attacks on its Android mobile platform and expand beyond its software business.

But the acquisition raised concerns on Wall Street that Google was entering a business with much lower profit margins.

(Reporting by Sagarika Jaisinghani in Bangalore and Alexei Oreskovic in San Francisco; Editing by Edwina Gibbs and Greg Mahlich)

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