We heard in October that Google had plans to further reduce Motorola’s workforce after cutting around 20 percent, or roughly 4,000 jobs, in August. The Wall Street Journal reported today on an email from Google that confirmed the company is beginning to cut around 1,200 employees (a little over 10 percent of its current total headcount):
Motorola MSI -0.74% staffers were informed by the company via email this week that “while we’re very optimistic about the new products in our pipeline, we still face challenges.” The company email added that “our costs are too high, we’re operating in markets where we’re not competitive and we’re losing money.”
As for where the cuts might take place, we previously reported that Motorola, which was unprofitable for 14 of its last 16 quarters, planned to reduce its operations in Asia and India, but today’s report said the layoffs would hit workers in the United States, China, and India. Google also warned that further restructuring might be necessary and significant costs could be involved.
In a recent piece from The Wall Street Journal highlighting Google executives’ fear that Samsung is gaining too much dominance, Android chief Andy Rubin said the purchase of Motorola was “a kind of insurance policy against a manufacturer such as Samsung gaining too much power over Android.”