Google's Motorola Mobility unit is laying off 10 percent its workforce — around 1,200 staff.
Workers were told in an email this week that Motorola was "operating in markets where we're not competitive and we're losing money", according to the Wall Street Journal. The cuts impact workers in the US, China and India, the paper said.
Google acquired Motorola Mobility for $12.5bn last May, quickly placing executives from within its own folds to steer the company's future. The acquisition was made partly due to Motorola's portfolio of 17,000 patents.
Motorola's chief executive Dennis Woodside has said the company would leave unprofitable markets and focus efforts on a few cell phones rather than many low-end devices. One of the new few may be the rumoured X-Phone.
Google chief financial officer Patrick Pichette said last week that Motorola was still draining old an 18 month pipeline of inherited products and that none of the products Motorola had released yet had the "wow" Google expected.
The company's headcount at the end of 2012 was 11,113.