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Google May Make More Motorola Cutbacks

Google expects higher layoff-related charges as it eliminates 4,000 jobs at Motorola Mobility, and the Internet giant said even deeper cutbacks could be in the offing.

In August, Google said it would lay off about 20% of Motorola Mobility's workforce, eliminating about 4,000 jobs and closing one-third of its 94 offices worldwide, in an effort to streamline operations.

On Thursday, Google said it now expects the layoffs at Motorola to result in severance-related charges of approximately $300 million, which will be recognized in the third quarter of 2012 and of which approximately $250 million is expected to be paid in cash.

In addition, the company will incur other charges related to facility and market exits of approximately $90 million in 2012 and 2013, of which approximately $40 million is expected to be recognized in the third quarter of 2012.

Previously Google said it expected layoff-related charges for Motorola of no more than $275 million.

Moreover, “Motorola continues to evaluate its plans and further restructuring actions may occur, which may cause Google to incur additional restructuring charges, some of which may be significant,” Google disclosed in an 8-K filing Thursday with the Securities and Exchange Commission.

"This filing was made to provide updated information around Motorola Mobility's cost reductions that were announced earlier this summer," a Google spokeswoman said in an email.

In May, Google closed the $12.4 billion cash acquisition of Motorola Mobility, driven largely by Google's desire to obtain the latter's patents. The Internet company valued Motorola's 17,000-plus patent portfolio at $5.5 billion, representing the largest component of the price tag.

As of the end of June, Motorola Mobility had 20,293 employees. Google previously said about one-third of the job cuts will be in the U.S.

Google is aiming to sell the Motorola Home unit, and has enlisted Barclays to seek buyers for the cable-focused division, according to multiple industry sources. Motorola is a major supplier of set-tops, cable modems and other hardware and software to cable operators and service providers.

In late June, Google hired Marwan Fawaz, previously chief technology officer of Charter Communications, as executive vice president of Motorola Mobility's Home unit. Motorola Mobility president Dan Moloney resigned to pursue other opportunities, the company said.