Expect More Cuts at Motorola, Says Google

Google has warned of further cost cutting measures including restructuring at Motorola as estimates of cost of job cuts has been raised further.

Severance related charges are expected to cost the firm 9% higher than expected at $300 million. There might be a addition of another $40 million due to exit in other markets and facilities added Google.

A spokeswoman added that Motorola will see further restructuring in markets outside the US, though additional job cuts won’t be a part of it.
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Motorola was acquired by Google for a whopping $12.5 billion inorder to strengthen the Android patent portfolio and protect its manufacturers from Apple & Microsoft’s aggressive patent lawsuits.

Though a lot of analysts & stock holders have questioned the move with Motorola’s loss making hardware business, suggesting that Google get rid of the manufacturing operations.

Google has never announced its long term vision with Motorola focusing only on making the business more efficient and reduce losses.

Although Motorola has reported losses in the last 14 of 16 quarters, it has not impacted Google’s sentiments in the market as shares went up by 0.7 percent at $767.65.

Google warned that Motorola will see further restructuring which might add significant restructuring costs to the search giant.

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