More Motorola Job Cuts Coming, Google Warns

Paul Lilly

Pink slips have been a near-constant worry for Motorola Mobility workers ever since Google entered the picture. Leading up to the acquisition, Motorola severed ties with around 800 employees and closed several facilities in an attempt to cut costs. More recently, Google in August said it would eliminate 4,000 jobs at Motorola Mobility, or 20 percent of the staff, and according to a K-8 filing with the Securities and Exchange Commission, more layoffs are coming.

Most of the additional job cuts will take place outside of the U.S.

"As previously reported on August 13, 2012, Google Inc. (Google) expects to incur certain charges in connection with planned restructuring actions at its wholly-owned subsidiary Motorola Mobility (Motorola). Motorola has continued to refine its planned restructuring actions and now expects to broaden those actions to include additional geographic regions outside of the U.S.," Google stated in the filing .

Related to the layoffs, Google said it expects to incure about $300 in severance-related charges in the third quarter, $250 million of which will be paid in cash. The remaining $50 million is related to facility closures and market exits.

All of this is aimed at returning Motorola Mobility to profitability after losing money in 14 of the last 16 quarters. The challenge Motorola faces is in competing with the likes of Apple (iOS) and Samsung (Android), the top two handset makers that account for the majority of smartphones sold.

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