Google has the unenviable position turning around Motorola Mobility and making it profitable again. That means the company has to make some tough decisions that will affect its employees around the world.

The Wall Street Journal reports that Google has begun laying off 1,200 employees at its Motorola Mobility hardware division. The cuts are a result of Motorola’s inability to return to profitability as the smartphone maker attempts to compete against the likes of Samsung and Apple.

The email announcing the layoffs said that the company “is optimistic about the new products in our pipeline,” but says that high costs and operating in non-competitive markets has led to a situation where the newly christened subsidiary of Google just isn’t making money. The layoffs will affect employees in the U.S., China and India.

The new round of layoffs is apparently a continuation of the layoffs announced last summer that affected over 4,000 employees at Motorola shortly after Google bought the company for $12.5 billion. Since then, the company has struggled to create a smartphone that could be certified as a hit.

Despite its struggles, Google is still trying to get the most out of its purchase. The company is reportedly working closely with Motorola on something called the “X Phone.” The rumored device is said to be “a real breakthrough” and will go on sale in July. It’s unknown if Google will announce the phone at May’s Google I/O, but it very well could be if the device is chosen to house the next version of Android.