1,200 Workers from Google's Motorola Lose Their Jobs

Layoffs of 1,200 workers from Google's Motorola Mobility are imminent. This represents 10 percent of the company's workforce who hail from China, India, and the United States.

The Wall Street Journal (WSJ) cited an internal company email from Google, Inc.'s Motorola Mobility. "While we're very optimistic about the new products in our pipeline, we still face challenges," said a quote from the email as reported by WSJ. "Our costs are too high, we're operating in markets where we're not competitive, and we're losing money."

Motorola was acquisitioned by Google, Inc. for $12.5 billion in 2011. Losses have been registered since then. In Q3 2012, Motorola reported an operating loss of over $500 million. And in the fourth quarter, a loss of $350 million was posted.

A representative from Motorola said to The Wall Street Journal, "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."

In August 2012, Motorola's restructuring effort began with its cutting off of 4,000 jobs, which is 20 percent of the company's workforce. A regulatory filing indicated that the layoffs are made in order to make Motorola Mobility profitable again after it posted losses in 14 out of 16 quarters. Google said that Motorola would grant "generous severance packages" as well as outplacement services to help the displaced workers find new jobs. Up to $275 million was expected by Google to be spent on severance-related charges and the like.

The Wall Street Journal reports that Google officials refer to the company's Motorola business as an insurance blanket in the event that Google loses its rein of Android to South Korean manufacturing giant, Samsung. Sources privy to the matter said that if that happens, Google will channel more of its resources into Motorola and possibly integrate it with Google's Android software unit. A spokesman from Motorola did not comment on Google's alleged plans for the company.

Several Google officials and product managers have been reassigned to help Motorola Mobility back to its feet and create mobile devices that can compete with the offerings put forth by Apple and Samsung. The Wall Street Journal reported in December 2012 about Motorola's "X Phone," a handset that is touted to serve as the company's flagship mobile device. (KOM) Link. Link.