Google’s attempts to return their Motorola Mobility unit to profit has led to another round of layoffs with more than 10% or 1200 employees leaving the company. Motorola’s staff were informed via email earlier in the week that “while we’re very optimistic about the new products in our pipeline, we still face challenges,” and added “our costs are too high, we’re still operating in markets where we’re not competitive and we’re losing money.” That’s highly motivating for the rest of the company’s staff.
The layoffs will affect works inside the US, China and India. A Motorola spokesperson told the Wall Street Journal that “”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.” Motorola has already reduced 20% of its workforce, or 4,000 employees as of last August. At the end of 2012, Google stated that Motorola has 11,113 employees.
Google is clearly working to return Motorola to profitability, but how far will it have to go before that happens? Given the recent comments from Senior VP of Google, Patrick Pichette regarding Motorola’s existing pipeline not impressing, just how far will Google take cuts at Motorola before it can churn out great devices, and find quarterly profits? Will the rumored X-Phone be the turnaround Motorola desperately needs?