Google Cuts 4000 Jobs from Motorola Mobility

Tech giant Google has announced that it will lay off about 4,000 employees from Motorola Mobility business. The company said it is focusing more on its Android business.

Two-thirds of the job loss will occur from its operations outside the United States. This includes operations in India and the rest of Asia.

The move also includes shutting off about 30 of its 90 global facilities. According to Google, the decision was made to simplify Motorola’s mobile phones and concentrate on being more innovative and come up with more profitable devices.

In a statement given to the Securities and Exchange Commission, Google said the developments were decided after Motorola lost money is the last 14 quarters.

Industry analysts also expect Google to take responsibility of severance payments of about US$275 million. The tech giant also said that investors should not expect any profit rebounds for the next few quarters.

Google purchased Motorola Mobility for US$12.5 billion last May with the idea of beefing up its Android platform.

According to a Google spokesman, Motorola is committed to help the laid-off employees through this transition. The company will also provide severance packages, including outplacement services so that the retrenched employees can find new work.

Motorola Mobility was an offshoot from Motorola, Inc. In 2011, Mobility was created to focus on mobile devices. Google took over the rein on the business unit to beef up its competition against chief rival Apple.