Motorola Mobility has announced that it will be laying off approximately 10% of its current workforce. The 10% number will impact about 1200 employees. As Motorola Mobility continues to reduce costs in an effort to return to profitability. Motorola officials told employees via e-mail that they are "very optimistic" about the new products they're working on but that "costs are too high."
The 1200 workers will be shed from the US, China, and India. A Motorola spokesperson said that the headcount reduction is a continuation of cuts that Motorola Mobility had announced last summer. In August of last year, Motorola announced that it would be cutting 20% of its workers, or about 4000 employees.
Motorola has promised it is "committed" to helping workers impacted by the cuts through the transition period. Google purchased Motorola Mobility for $12.5 billion in 2011. After Google purchased Motorola Mobility, the hardware company continued to post significant losses.
In Q3 of 2012, Motorola Mobility lost over $500 million. The losses continued during Q4 2012, despite the lucrative holiday shopping season, with Motorola Mobility losing over $350 million during the quarter. Motorola didn't mention how much money it expects to save with the additional layoff of 1200 employees.
[via Wall Street Journal]