Google to Cut 4,000 Jobs at Motorola Mobility Unit

Google Motorola

MOUNTAIN VIEW, Calif. -- Google said Monday that it will cut about 4,000 jobs at its Motorola Mobility wireless phone business and will close or consolidate about one-third of Motorola's 90 locations.

The reductions represent about 20 percent of Motorola Mobility's 20,000 employees, and two-third of the job cuts will take place outside of the U. S. The company said Monday that Motorola Mobility has lost money in 14 of the past 16 quarters.

Google (GOOG) said the changes are intended to make the unit profitable, but warned that investors should expect the business' revenue to fluctuate over the next few quarters.

"While lower expenses are likely to lag the immediate negative impact to revenue, Google sees these actions as a key step for Motorola to achieve sustainable profitability," the company said in a filing with the Securities and Exchange Commission.

Google said it also will shift Motorola Mobility's focus from simple wireless phones to more profitable devices.

The restructuring will cost Google about $275 million in severance costs, which will largely be recognized during the third quarter. The company also expects to book an unspecified amount in restructuring charges, mostly in the third quarter.

Mountain View, Calif.-based Google completed its $12.5 billion purchase of Motorola Mobility in May. The deal, the most expensive in the company's history, expanded it into the hardware business and pushed it deeper into the cellphone business, a market it entered four years before with the debut of its Android software.

The cellphone pioneer had struggled in the years leading up to the deal. It hadn't produced a mass-market hit since it introduced the Razr cellphone in 2005 and its market share has fallen.

Google shares rose $7.20 to $649.20 in premarket trading.


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nadiine9

Business is business . . companies will do what's best for the company. The economy is bad and 0bama has no plans other than to double down on failure from the past.

August 14 2012 at 7:37 AM Report abuse rate up rate down Reply
saeed - iran

nice....thanks to google...im from iran-tehran..im very happy for this news/////

America and Britain are enemies of the Iranian people

Iran boycotted because life was very hard for the people of Iran

August 14 2012 at 2:16 AM Report abuse rate up rate down Reply
Hi Kathy & Dean

ALL RIGHT! 2/3 % of job cuts OUTSIDE OF THE U.S.!

August 13 2012 at 9:39 PM Report abuse +1 rate up rate down Reply
Hi Kathy & Dean

ALL RIGHT! 2/3 % job cuts OUTSIDE OFBTHE U.S.!

August 13 2012 at 9:38 PM Report abuse +3 rate up rate down Reply
franctootall

Cashing in on the booming economy no doubt.

August 13 2012 at 6:25 PM Report abuse -2 rate up rate down Reply
omensofaries

Mmmm, 4000 more on the unemployment line. Is this part of the Obama's private industry is doing 'fine' pep talk?

August 13 2012 at 6:18 PM Report abuse -6 rate up rate down Reply
1 reply to omensofaries's comment
JUDY

Sorry only 1/3 is going on unemployment.....the rest are overseas. Thats still way to many, but I am sure the government put them in business like they have every other business, right Obama?

August 13 2012 at 6:59 PM Report abuse -2 rate up rate down Reply
1 reply to JUDY's comment
dago&betty

they did not create that

August 13 2012 at 7:08 PM Report abuse +3 rate up rate down
eazygoing2u

it's Obamas fault! Geez it felt good to say that...

August 13 2012 at 6:06 PM Report abuse -3 rate up rate down Reply
pinkturkeybull

who cares? little people walk

August 13 2012 at 4:42 PM Report abuse -2 rate up rate down Reply
1 reply to pinkturkeybull's comment
lazyh

Some of those "little people" are highly skilled engineers with advanced degrees. If they are expendable, no one has a safe job.

August 13 2012 at 6:13 PM Report abuse +3 rate up rate down Reply
lacabrera

Union greed ,works everytime ,,let's blame Bush and congress ,it's their faults ,,,there is not need for backlash they didn't build that ,the government did ..

August 13 2012 at 3:52 PM Report abuse -2 rate up rate down Reply
fixinflabbio

So much for the "JOB CREATORS" Lets give the Koch Bros and the Corps another 5 trillion in Tax Cuts.

August 13 2012 at 2:17 PM Report abuse +8 rate up rate down Reply