Google-owned Motorola Mobility is to lay off 1,200 employees -- more than 10 percent of its workforce -- in its latest round of restructuring. According to reports from the Wall Street Journal, the job losses will affect workers in the U.S., China and India as the company seeks to become profitable.
These latest layoffs come on top of a 20 percent cut in jobs which occurred last August, and saw Moto close up shop at a third of its offices. At the time the manufacturer indicated that it wanted to transition out of "unprofitable" markets and focus on high-end handsets.
In an internal email obtained by the WSJ, Moto says, "while we're very optimistic about the new products in our pipeline, we still face challenges," adding "our costs are too high, we're operating in markets where we're not competitive and we're losing money."
A Moto spokesperson is quoted in the journal as saying "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."
Despite the launch of the high-profile RAZR i in partnership with Intel, Moto remains a marginal player in the European smartphone market. And in the U.S. it's struggled to compete against the dominant force of Samsung. High-end hopes are now being pinned on the rumored "X Phone," said to be due for release later this year.
Source: Wall Street Journal