Google filed a document with the Securities and Exchange Commission on Monday in which it said it plans to cut 4,000 employees from its Motorola Mobility unit. The unit currently has about 20,000 employees. Google said it will “close or consolidate” 30% of Motorola’s 90 locations around the globe. The firm will also shift its emphasis on basic feature phones to more robust devices that will help drive profits. Motorola Mobility hasn’t had a profitable quarter in 14 of the last 16 quarters, the AP said.
“Motorola understands how hard these changes will be for the employees concerned and is committed to helping them through this difficult transition,” Google explained in its SEC document. “Motorola will be providing generous severance packages, as well as outplacement services to help the employees find new jobs. Google expects to incur a severance-related charge of no greater than $275 million, which it believes will be largely recognized in the third quarter, with the remaining severance-related costs recognized by the end of 2012. Google also expects to incur other restructuring charges related to the actions described above, the majority of which will be recognized in the third quarter. Although Google cannot currently predict the amount of these other charges at this time, these additional charges could be significant.”
Google officially acquired Motorola Mobility on May 22nd.