Monday, August 13, 2012

Google Cutting Motorola Staff By 20 Percent In Search Of Profits

Google is slicing 20 percent of Motorola Mobility's staff, or about 4,000 of the subsidiary's 20,000 employees, in a bid to lapse the phone and inscription creator to profitability.

In a filing submitted to the Securities and Exchange Commission detailing the plans, Google didn't singular out any definite tools of the firm is to layoffs, but it was remarkable that Motorola's product line would change as a outcome of the changes, that will add a few office and plant closures as well.

"Two-thirds of the shrinking is set to happen outward of the U.S.," Google wrote in the filing. "In addition, Motorola skeleton to shut or combine about one-third of its 90 facilities, together with facilitate its mobile product portfolio - changeable the stress from underline phones to more innovative and essential devices."

Google closed its $12.5 billion takeover of Motorola Mobility in May. Shortly thereafter, Google allocated Dennis Woodside as the subsidiary's new CEO. Woodside has no credentials in consumer electronics, the mobile attention or engineering. Rather, Woodside is a mergers and acquisitions counsel who has been with Google given 2003, and oversaw the company's efforts to buy Motorola Mobility.

The work cuts and trickery closures are all being done with an eye toward creation Motorola a self-sufficient, essential entity, Google mentioned in the filing, observant that Motorola Mobility "lost allowance in fourteen of the final sixteen quarters."

It's misleading if the preference to make the work cuts came from Woodside and Motorola, or Google and its arch executive, Larry Page. Google has mentioned in the past that it would let Motorola run as a firm eccentric of its richer, more essential parent.

Officials at Google and Motorola were not available on Monday to criticism over the SEC filing, that was initial reported on by The Next Web .

The moves, of course, won't advance without a cost. "Google expects to catch a severance-related assign of no larger than $275 million, that it believes will be mostly established in the third quarter, with the outstanding severance-related expenses established by the finish of 2012," the filing said. "Google moreover expects to catch other restructuring charges connected to the activities described above, the most of that will be established in the third quarter. Although Google cannot now envision the amount of these other charges at this time, these extra charges could be significant."

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