Google To Lay Off 4,000 People At Motorola
According to a document filed with the SEC, Google will be laying off 4,000 people (20% of their workforce) at Motorola Mobility. Two-thirds of the layoffs are happening outside the U.S. Motorola plans to close about one-third of their 90 facilities and will simplify its mobile product devices.
These job cuts are intended to help Motorola turn a profit again after losing money in 14 out of 16 of their last quarters. Google will incur a severance-related charge of $275 million or less that will be recognized in the third quarter of the year. The remaining severance-related costs will be recognized at the end of 2012.
Google acquired Motorola Mobility for $12.5 billion about one year ago.