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Google Cuts Another 10 Percent Of Motorola Mobility's Workforce

By Rob Wright
March 08, 2013    12:55 PM ET

Jobs cuts at Motorola Mobility have become an unfortunate trend since the handset maker was acquired by Google.

Google Friday confirmed another round of layoffs for its subsidiary, which will cut 1,200 jobs or 10 percent of Motorola Mobility's workforce. The layoffs were first reported by The Wall Street Journal, citing a company email announcing the cost-cutting move, and Reuters later reported the layoffs would include staff in the U.S., as well as China and India.

Google acquired the smartphone division of Motorola for $12.5 billion in 2011 to strengthen the search giant's mobility business, but the subsidiary has undergone a massive restructuring that's included a steady stream of layoffs.

[Related: Analyst: Android Nabs Over Two-Thirds Of Q4 Smartphone Shipments ]

Google first announced major layoffs for Motorola Mobility last August around the one-year anniversary of the acquisition; Google cut 4,000 or 20 percent of Motorola's then-20,000 employees.

Google then warned of additional layoffs in October ahead of the company's third-quarter earnings call, which saw disappointing results and a $527 million loss for Motorola Mobility. Google then closed nearly all of Motorola Mobility's operations in South Korea (where Google partner and Android devotee Samsung is based) in December.

Motorola's smartphone business has faced increasing pressure not only from Apple and Samsung but a new crop of Android smartphone makers in China, such as Lenovo, Huawei and ZTE.

PUBLISHED MARCH 8, 2013

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