Motorola

Google this evening confirmed in an SEC filing that it plans to cut some 4,000 employees from the recent acquisition of Motorola -- about a fifth of the company's workforce. And it's going to cost Google some cash to do so -- to the tune of $275 million, and Google expects most of that charge to be taken in the third quarter. Google says it plans to close some 30 facilities as well, and "simplify its mobile product portfolio, shifting the emphasis from feature phones to more innovative and profitable devices."

The New York Times first reported the planned downsizing on Monday.

Shedding 4,000 bodies and 30 buildings won't immediately turn things around, though. Google correctly notes that Motorola has lost money 14 out of the last 16 quarters -- that's all but six months in the last four years -- and that while these cuts are a "key step" on the road to profitability, "investors should expect to see significant revenue variability ... for several quarters."

This affects real people, of course. Google says "generous" severance packages will be provided, as well as job placement services. Regardless, that's still 20 percent of Motorola work force that's about to be out of work. But if there's a company willing to treat layoffs with a little dignity, we're willing to bet it's Google.

Source: SEC

 
There are 17 comments

IceDree says:

Its always sad to read about Layoffs ... especially in big numbers.

I just hope Google have some patience & not shutdown Moto in a few months like HP did to Palm

Very sad when that many people lose their jobs but hopefully Google has a great job placement service. One the plus side a simplified portfolio is what they need. I'd buy moto again if they unlock all future boot loaders and perhaps went stock android.

walkingsad says:

wow thousands of jobs are killed off everyday... This is only 4k more in this sad economy of ours. Well only another 5 years before we get back to the good old days which we will once again forget about the recession that will be around the next corner.

DWR_31 says:

Moto just pulled a Nokia!!!!!!

Fahrenheit says:

Nice, the same day Google announces they're laying off 4000 Motorola Mobility employees (which makes their stock price shoot up), they announce the purchase of the Frommers company with all that extra cash. Stay classy Google :-/

l00natic71 says:

I can't tell if that was sarcasm or complete lack of understanding of business.

bplewis24 says:

Lack of understanding, for sure.

Fahrenheit says:

Definitely no sarcasm here. Are you saying its "the right thing to do" to announce layoffs, while simultaneously announcing the purchase of a business? I would assume you've never been layed off, judging by your acceptance of a tactless announcement on Google's part.

Also by resorting to trolling, you've shown you have a lack of understanding of civil debate.

drathos says:

One has nothing to do with the other.

MotoMob is a completely separate entity under the Google umbrella and they're trying to streamline it back out of the funk it's gotten itself into and, hopefully, back to profitability.

The Frommer's deal has probably been in the works for a while.

DrDoppio says:

Google didn't acquire Motorola Mobility to keep it as a dead weight. If these measures will strengthen the rest of the company then go for them!

cashxx says:

Google bought Motorola for Patents and a hardware division. I wonder how Samsung, HTC and the others feel about Google getting into the Hardware business and finally controlling the OS and Hardware and controlling the user experience from end to end. Isn't this why Apple is hated so much? Thats the whole reason why Windows was loved and Android OS is loved is because of the openness and freedom to license the OS to other vendors and spread the wealth. Going to stop if Google is able to make killer hardware and match Android OS to it. They will be just like Apple then and putting a hurt on its partners! Microsoft is now doing kinda the same thing with its Surface tablets that have a few partners angry. Interesting times!!

althomas39 says:

Come back when Google starts barring Samsung, HTC, and others from using their open source software. I haven't seen any plans for Google to stop letting manufacturers customize Android to their liking, but having a hardware division lets Google release more stock Android devices. If the market gravitates towards the vanilla experience rather than the manufacturer's spin on the OS, then so be it, but Google is far from Apple's iron-clad control over end to end experience.

fireandlce says:

I can only imagine what would happen if Apple had to lay off 4,000 of their workers. Knowing Apple it would be something like this,

"Thank you all for coming here today and having some of this wonderful pancake breakfast. I know you've been hearing a lot of rumors lately about your job status for the last 6 months, and I'm here to put those rumors to rest. The big announcement that you've all been waiting for is....

"You're all fired.
"We've hired some new people to replace you and they're getting the shiny new hats that we were unable to provide you with because we like to be mysterious like that.
"So enjoy the rest of your pancakes! It'll be the last thing that we give you, and it's on sale today at $19.99. If you've already started eating you can make your payment on the way out HAVE A NICE DAY!" *Books it*

cashxx says:

I'd like to know the packages they are getting and actually what job searching help is happening. What Google says and what Google does are two different stories.

bplewis24 says:

Actually, they are not two different stories. Do your research. In fact, look up Google and "death benefits."

Rob White says:

I was going to suggest the same thing to this recently converted Google hater who continues to troll this site. But alas it would be a waste of good conversation so just move on.

MrStylz says:

Wow...impressive. I've never even heard of anything REMOTELY close to what they offer. Usually it's life insurance or SOL.