In an effort to achieve “sustainable profitability,” Google will cut 20 percent of Motorola’s workforce in the wake of the company’s acquisition by the internet search giant. The result is a loss of about 4,000 jobs, with Moto’s US operation shouldering one third of the hit. The cuts also come as Motorola plans to reduce its efforts in India and Asia while cutting R&D spending virtually across the board.
CEO Dennis Woodside told The New York Times that Motorola will refocus their efforts on producing a smaller number of high-quality devices, a move that mirrors the approach of other cell manufacturers with recent struggles such as HTC and LG. Google says the cuts were influenced by the trend of monetary losses that has surfaced over the past few years, and warns of “significant revenue variability” for the foreseeable future.