Google Lays Off 4,000 Motorolla Employees

Google GOOG announced Monday that it would lay off 20 percent of its Motorola workforce, or about 4,000 employees. These layoffs are an initial step in Google's reinvention of the struggling electronics manufacturer, and part of an effort to break into the hardware market. Of the jobs lost, approximately one third will be U.S.-based as Motorola pivots on its strategy to leave low end markets and focus on fewer cell phones. While Google claims that it primarily purchased Motorola for its war chest of patents, some analysts wonder if Google can succeed in the highly competitive and low-margin cellphone business. 90 percent of the profits in the cellphone market are being eaten up by Apple AAPL and Samsung, leaving preciously little for the rest of the competitors. In addition to layoffs, Google has also restructured Motorola's upper management, significantly cutting down its vice presidents and shrinking its operations in Asia and India. While Google has made significant cuts, they have also added a team called "Advanced Technology and Projects" to lead the struggling mobile phone manufacturer back to profitability. The announcement sat well with investors as Google's stock rose $18.01-- or 2.8 percent -- to $660.01 on Monday.