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Google’s Motorola to cut it’s workforce by 10%

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Last year, Google laid off 4,000 or 20% of Motorola employees and this year, Google is going to cut another 10%  of Motorola’s workforce. The Wall Street Journal caught an internal email discussing the reasons behind the sudden layoffs.

Our costs are too high, we’re operating in markets where we’re not competitive and we’re losing money, said a Motorola spokesperson in the internal email. The business division is still losing a lot of money every quarter and it impacts Google’s bottom line.

These new cuts impact employees in the U.S., China, and India reducing the team by 1.200 employees. Motorola had reported a 1.5 billion revenue in 2012, but that was shortly after reporting a loss of $353 million. Google picked up Motorola in mid-2011 for 12.5 billion dollars.

While we’re very optimistic about the new products in our pipeline, we still face challenges, it says.
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, a Motorola spokesperson said.

Motorola definitely takes a hit, but the company is very determined to push this issue aside and to make it through the next generation of mobile devices with minor problems along the way. We hope that Motorola has some sort of a ‘wow feature or product’ up their sleeve to keep them from falling behind in the ever so competitive smartphone market.

The post Google’s Motorola to cut it’s workforce by 10% appeared first on Tech News Today.


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