Google's Motorola unit suspends India ops, cuts 76 jobs

Google Inc’s Motorola Mobility unit has suspended operations in India indefinitely and also slashed 76 jobs here as part of its cost cutting restructuring programme globally, the Wall Street Journal reported today.

Globally, the smartphone maker has begun slashing 1,200 jobs or 10 percent of its workforce as it tries to return to profitability.

Motorola has suspended production at its facility near Chennai since the end of February, the report quoted the company spokesperson as saying who refused to divulge the total headcount in India.

The internal email published by the Journal said: “Our costs are too high, we’re operating in markets where we’re not competitive and we’re losing money.”

Google bought the money-losing cellphone maker for $12.5 billion last year - its largest acquisition ever - aiming to use Motorola Mobility’s patents to fend off legal attacks on its Android mobile platform and expand beyond its software business. The acquisition raised concerns on Wall Street that Google was entering a business with much lower profit margins.

Motorola Mobility was created in 2011 when US-based Motorola Inc split the company into a mobile devices unit and a government and public safety division known as Motorola Solutions.