Google-owned Motorola has begun laying off some 1,2000 employees, which make up about 10 percent of its work force.
The company announced in August 2012 that it would be trimming 4,000 staff members but that two thirds of the job cuts will be from outside the US, reports CNN.
"These cuts are a continuation of the reductions we announced last summer," a Google spokeswoman said in a statement. "It's obviously very hard for the employees concerned, and we are committed to helping them through this difficult transition."
Google bought the cell phone maker in May 2012 for $12.5 billion
Motorola told its employees about the layoffs in an email that was obtained by the Wall Street Journal, saying "while we're very optimistic about the new products in our pipeline, we still face challenges."
It added that the company's "costs are too high, we're operating in markets where we're not competitive and we're losing money."
According to eWeek, Motorola has just over 11,000 employees, not including the employees of its Home Business.
The company is in the process of selling that division, which employs another 7,000 people, to the Arris Group for $2.35 billion.
CNN reports that despite the restructuring, Motorola's mobile business continues to lose money. It took a $353 million hit in the fourth quarter of 2012.
Google's Chief Financial Officer Patrick Pichette told CNN that he expects Motorola's financial results to be volatile "for quite awhile."