Google to Cut 1200 More Motorola Jobs

Google Purchased Motorola for $12.4-Billion

Last year Google purchased Motorola for $12.4-billion, mainly to own their 17,000 patents, boosting the company in the mobile device race with other mobile device manufacturing companies. The cell phone business has lost market share to Apple and Samsung, however, and posted operating losses of $1.1 billion since Google squired Motorola in May.

Google has announced that they are cutting 1200 more jobs in their Motorola Mobility division. This is in addition to the 4,000 layoffs last year.

Cuts Announced Last Summer

Niki Fenwick, spokeswoman for Google stated: “These cuts are a continuation of the reductions we announced last summer. It’s obviously very hard for the employees concerned, and we are committed to helping them through this difficult transition.”

When Google bought Motorola last year, Motorola had about 20,000 employees. Google sold Motorola’s cable box division for $2.4 billion in December, and has outsourced much of Motorola’s manufacturing business. Google also expects to pare jobs at the division with a planned $2.35 billion sale of the Motorola set-top business, which has about 7,000 employees.


Cuts a Wise Decision?

The acquisition of Motorola does not look like a wise decision thus far. The cell phone business has lost market share to Apple and Samsung, and posted operating losses of $1.1 billion since Google completed the Motorola deal in May. Motorola lost $353 million in the fourth quarter of 2012, and Google’s Chief Financial Officer Patrick Pichette has said he expects Motorola’s financial results will be volatile “for quite awhile.”

Shares of Google fell slightly when the cuts were announced, But the stock is up 17% so far this year and hit an all-time high on Wednesday.

Tim Martin is a Technology specialist, who gives us insights into the technology and software that helps us to get through our day. Technology is everywhere, an increasingly pervasive part of our lives. Tim helps us make sense of it in many ways.