Google Inc. plans to cut about 4,000 positions at its Motorola Mobility subsidiary, about one-fifth of the cellphone maker's total workforce.
The leading search engine company says two-thirds of the reductions at Motorola Mobility will be outside of the U.S., but Google didn't disclose details.
Motorola Mobility has lost money in 14 of the past 16 quarters, Google said.
Google said the changes are intended to make the Motorola unit profitable, but warned that investors should expect the business's revenue to fluctuate over the next few quarters.
Google said it also will shift Motorola Mobility's focus from simple wireless phones to more profitable devices.
The restructuring will cost Google about $275 million in severance costs, which will largely be recognized during the third quarter. Google completed its $12.5-billion purchase of Motorola Mobility in May.
The deal, the most expensive in Google's history, expanded it into the hardware business and pushed it deeper into the cellphone business.
