Google plans more job cuts at Motorola

Share on Facebook Tweet Snapchat Share Reddit Comment
Google plans more job cuts at Motorola
Google is expanding its plan to cut jobs from its Motorola Mobility unit outside the U.S. and will take $390 million for severance costs and other charges related to the layoffs.

The online search leader said in August that it would cut about 4,000 jobs at Motorola, planning to close or consolidate about one-third of Motorola's 90 locations. It said then that two-thirds of the job cuts, about 7 percent of Google's overall work force, would take place outside the U.S.

Google Inc. bought Motorola Mobility, which makes cellphones and cable set-top boxes, in late May for $12.4 billion. It was its largest acquisition ever, broadening the company's business from its roots in Internet search and other online services to manufacturing equipment.

About $300 million of the charges announced Thursday are related to severance payments and will be taken in the third quarter, according to a filing by Google with the Securities and Exchange Commission.

The Mountain View, Calif., company also expects to pay about $90 million in charges for the cost of closing facilities through 2013. About $40 million of those charges are expected to be taken in the third quarter.

Motorola may make even more cuts as it evaluates its plans, which could result in more charges, Google said.

Google shares rose $2.50 to $765 in premarket trading Thursday.


For the latest tech news and reviews, follow Gadgets 360 on Twitter, Facebook, and subscribe to our YouTube channel.

Further reading: Google, Motorola
Zync launches Z-930, 7-inch Android 4.0 tablet for Rs. 5,499
BSNL launches WiFi-only Penta T-Pad starting Rs. 3,999

Related Stories





© Copyright Red Pixels Ventures Limited 2020. All rights reserved.