Job cuts aren’t free. Firms typically face high expenses as they lay off employees or force them into early retirement. As such, Google expects that it will spend $300 million this quarter as it cuts 20 percent of Motorola Mobility’s employees. That cost is 9 percent higher than the company’s original $275 million dollar estimate, Reuters said Thursday.
“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’s Motorola Mobility said today. Motorola continues to evaluate its plans and further restructuring actions may occur, which may cause Google to incur additional restructuring charges, some of which may be significant.” Google didn’t specifically say what those additional charges might be, but The New York Times speculated two months ago that it could involve the shuttering of Asian operations.
Neither Google nor Motorola mentioned if the adjustment in costs was due to an increased number of layoffs.