Google to cut 1,200 jobs at Motorola Mobility - WSJ

March 8 Fri Mar 8, 2013 1:23am EST

March 8 (Reuters) - Google Inc's Motorola Mobility unit will slash 1,200 jobs or 10 percent of its workforce as the smartphone maker tries to return to profitability, the Wall Street Journal reported on Friday, citing a company email.

The layoffs come on top of 4,000 jobs Google eliminated at Motorola Mobility in August as the Internet search giant seeks to make more smartphones and fewer simple handsets.

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 patents to fend off legal attacks on its Android mobile platform and expand beyond its software business.

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

Google and Motorola Mobility could not be immediately reached for comment by Reuters outside regular business hours.