Google axes more jobs in bid to save Motorola [Scotsman, The (Scotland)]
(Scotsman, The (Scotland) Via Acquire Media NewsEdge) Google said yesterday that it was axing 10 per cent of the workforce at Motorola Mobility as it tries to return the smartphone maker to profit.The 1,200 job cuts come on top of the loss of 4,000 roles in August as it pares back the manufacture of simple handsets, rapidly disappearing from the market in favour of smartphones.In an e-mail to workers about the job cuts, the search engine giant said: "Our costs are too high, we're operating in markets where we're not competitive and we're losing money."Workers in China, India and the US will be affected.Google bought loss-making Motorola last year for dollars 12.4 billion (GBP8.3bn) and is thought to have been primarily interested in its 17,000 patents, bolstering its position in the mobile device arms race.The phone business has lost market share to Apple and Samsung, however, and posted operating losses of dollars 1.1bn since Google completed the acquisition in May. In December Google announced it was selling Motorola's set-top box business.Analysts are concerned that adding a phone manufacturing business could hurt Google's profitability and potentially alienate the other device makers that use its Android mobile operating system. Samsung, HTC and other phone makers run Android. Apple and BlackBerry have their own systems.
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