Motorola Mobility has produced a quarterly loss for for most of the last four years. Google acquired the company last year in a $12.5 billion transaction that was finalized in May.
The handset maker will reduce its production of low-end mobile devices and concentrate on higher-end products, the Associated Press noted.
Google cautioned that the restructuring may take time and that the unit’s results may be uneven in the immediate future.
The payroll reductions will result in a $275 million charge. Most of that, along with other reorganization charges, will be recorded in the third quarter.
In addition to the job cuts — roughly two thirds of which will occur at overseas operations — the Internet search giant will also slash Motorola Mobility locations by about a third.
Shares of Google rose more than 1% in early Monday trading.