NEW YORK, NY - SEPTEMBER 05: Three new Motorola Razr smartphones are displayed at the launch of the phones which are all under the Razr brand and will become available for Verizon customers on September 5, 2012 in New York City. The new phones, the Droid Razr HD, the Razr M and the Razr Maxx HD, will all use Google's Android operating system. Motorola Mobility was acquired by google in August of 2011. (Photo by Spencer Platt/Getty Images)
Motorola Mobility is laying off about 1,200 employees, about 10 percent of its employees, according to reports.
Motorola Mobility, which is owned by Google, told employees by email that costs were too high and the company was losing money, according to the Wall Street Journal. They were also told there would be layoffs in China, India and the United States.
The layoffs come after a 20 percent reduction in the company that began last August. Last year, Google sold off its Motorola Home branch to the Arris Group for $2.35 billion in December. Google paid $12.5 billion for Motorola in 2011 and Motorola has shown operating losses ever since. It's rumored that Google acquired Motorola just in case it loses control of the Android platform to Samsung.
The question still remains what does Google have planned for Motorola? Is it simply an "insurance policy" against Samsung, or does it plan on creating some great mobile devices? While there's some rumors about a new X Phone in the works that could provide needed revenue, it still seems as Google doesn't really have a plan for Motorola's future.