News by Andrew Kameka on Friday March 08, 2013.
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Google subsidiary Motorola Mobility will layoff 1,200 employees, which is 10 percent of its current workforce, in an attempt to make the company profitable. The Wall Street Journal reports that a company email it obtained details that the layoffs have already begun and will affect workers in the U.S., China, and India.
Motorola's decision to reduce its workforce follows the closure of one-third of its facilities and exit of several unprofitable markets. The company announced plans to cut 4,000 jobs last August because of continued loses, and the most recent round of layoffs are part of a strategy to cut costs as Motorola tries to emerge from Samsung's shadow.
Motorola has not been profitable during any financial quarter since Google acquired the company for $12.5 billion. The company lost $350 million in the fourth quarter of 2012, and its smartphone and tablet offerings have not managed to increase consumer adoption. Upcoming phones also may not turn the company around given Google CFO Patrick Pichette's comments that Motorola's phones don't meet Google's "wow" standards.
Andrew is MobileBurn.com's managing editor. He is based in Miami, Florida.