By Shailesh Shrivastava email: email@example.com | Mar 08, 2013 09:18 AM EST
While fans of Motorola were enjoying the rumored information about the Motorola X phone and waiting for the 'amazing' device to be announced officially, people employed with Motorola got bad news.
Google's Motorola Mobility announced job cuts at its hardware units in U.S, China and India amounting to over 10 percent of its headcount.
According to a Wall Street Journal report, an email from Motorola to its employees states, "While we're very optimistic about the new products in our pipeline, we still face challenges." The company email added that "our costs are too high, we're operating in markets where we're not competitive and we're losing money."
Another Wall Street Journal report states that Motorola's Indian unit in Chennai has halted its operations and laid off 76 employees as part of its cost cutting drive.
The Chennai unit of Motorola is one of its phone-manufacturing units.
"These cuts are a continuation of the reductions we announced last summer. It's obviously very hard for the employees concerned, and we are committed to helping them through this difficult transition," the Wall Street Journal quoted a Motorola spokesperson as saying.
The move of job cuts comes just after some days when Google termed Motorola products lacking of 'wow factor' and not being impressive.
Google CFO, Patrick Pichette, during the recently held Morgan Stanley Technology Conference said that Google doesn't find Motorola's near future product line impressive.
"We've inherited 18 months of pipeline that we actually have to drain right now, while we're actually building the next wave of innovation and product lines," Pichette said.
This is Google's second move in recent time that has put people waiting for Motorola X phone or Google X phone in confusions about the existence of the device.
If Motorola is really in the making of the X phone then the job cuts at its major locations such as China, India and U.S. indicate towards the point that the 'amazing' device is not coming this year in any case.
The move of cost cutting also makes people think that Google may go ahead and stop the production of some of the Motorola devices that are not doing well in the market.
The step taken by Google looks logical at this point of time but we always have to wait and watch as Google or let's say Motorola is not really 'strategically' with its plans, but the Google brain behind it may give a positive move to the strategy this time.
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