Google is cutting an additional 1,200 jobs in its Motorola division as the unprofitable cellphone maker struggles to compete.
Last year, Google Inc. announced 4,000 Motorola job
cuts. The latest reductions are in addition to those and will be in
countries including the U.S., China and India.
"These cuts are a continuation of the reductions we announced last
summer," Google spokeswoman Niki Fenwick said in an email.
When U.S.-based Google bought Motorola last year for $12.4 billion, it had about 20,000 employees.
The online search leader 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. Google had about 53,000
employees as of late September.
Google bought
Motorola primarily for its 17,000 patents, bolstering the company in the
mobile device arms race with other technology companies. The cellphone
business has lost market share to Apple and Samsung, however, and posted
operating losses of $1.1 billion since Google completed the Motorola
deal in May.
Analysts have been concerned that
adding a phone manufacturing business could hurt Google's profitability
and potentially alienate the other device makers that use Google's
Android mobile operating system. Samsung, HTC and other phone makers run
Android. Apple and BlackBerry have their own systems.
The Wall Street Journal reported the Motorola job cuts in Friday's editions.
Google shares rose $3.39 to $835.99 in premarket trading.
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