Internet giant Google plans to lay off about 4,000 employees at Motorola Mobility, a cellphone maker it bought in May for $12.5 billion, for the purpose of profitability return.
"These changes are designed to return Motorola's mobile devices unit to profitability, after it lost money in fourteen of the last sixteen quarters," Reuters quoted Google as saying in a filing with the US Securities and Exchange Commission.
"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 United States would account for one-third of the job losses; however, the company has yet to specify where or what facilities would be affected.
"While we expect this strategy to create new opportunities and help return Motorola's mobile devices unit to profitability, we understand how hard these changes will be for the employees concerned," the company spokeswoman said.
"Motorola is committed to helping them (the employees) through this difficult transition and will be providing generous severance packages, as well as outplacement services to help people find new jobs," she said.