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Google plans to cut Motorola jobs
Tuesday August 14th 2012
Google has announced it is to cut 4,000 jobs from its Motorola Mobility phone business, as the internet giant bids to make the unit profitable again.
The mobile phone maker, which was subjected to a $12.5bn (£8bn) buyout from Google last May, is poised to lose around a fifth of its 20,000 workforce, although only a third of the cuts will blight the United States.
Google stated that it will shift Motorola's focus from wireless phones to more profitable devices, but warned investors to expect the business' revenue to fluctuate over the next few quarters.
"While lower expenses are likely to lag the immediate negative impact to revenue, Google sees these actions as a key step for Motorola to achieve sustainable profitability," the company said.
The Motorola Mobility takeover was the most expensive acquisition in Google's history but has failed to live up to expectations.
The US-based phone maker has failed to produce a mass-market hit since the introduction of the Razr seven years ago and has seen its market share plunge in recent years.
Copyright Press Association 2012
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