Google acquired Motorola in 2012 for $12.5 billion when the mobile phone company was already struggling with financial problems. The main reason of the merger was the number of patents held by Motorola and its knowhow in manufacturing Android based smart phones.

Since then, Google cut over 4000 jobs, closed almost all the international sites and exited the Korean market, also cutting off 500 jobs, in a desperate struggle for financial savings. Along with the staff cuts, Google sold the set top box business Motorola Home in December of 2012 for $2.35 billion.

The Wall Street Journal intercepted an internal email from Google which read, ”while we’re very optimistic about the new products in our pipeline, we still face challenges…our costs are too high, we’re operating in markets where we’re not competitive and we’re losing money.”

Motorola confirmed the news from TWSJ to The Next Web and their spokesman declared, “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.”

Motorola reported operating losses in 2012 of $500 million in Q3 and $350 million in Q4.