by Christopher Freeburn | October 4, 2012 10:31 am
It looks like more job cuts are coming at Google‘s (NASDAQ:GOOG) Motorola Mobility unit.
The Internet search giant announced on Thursday that charges relating to payroll reductions and operational changes would cost more than originally estimated. Google now estimates those charges at $390 million, the Associated Press noted.
Google said that $300 million of those charges related to severance pay, while $90 million resulted from restructuring costs. Some of the charges would be recorded in the third quarter.
That’s up from prior guidance. Google officials said the company is considering additional cuts at Motorola.
Since it acquired Motorola Mobility last year for $12.5 billion, Google has attempted to cut losses at the handset maker. In August, it slashed Motorola’s payroll by 4,000 workers.
It also announced plans to shutter roughly 30 Motorola facilities outside the U.S. Most of the job cuts were expected to hit overseas workers.
Earlier this week, Motorola dropped one of the two patent infringement lawsuits it had filed against Apple (NASDAQ:AAPL) before the U.S. International Trade Commission. Google and Apple have been locked in a global legal battle over mutual accusations over patent violations in each other’s products. A patent lawsuit between Motorola and Apple is scheduled to go to trial in Wisconsin next month.
Shares of Google rose fractionally in early Thursday trading.
Source URL: http://investorplace.com/2012/10/google-warns-of-more-motorola-job-cuts/
Short URL: http://invstplc.com/1nVoXsu
Copyright ©2017 InvestorPlace Media, LLC. All rights reserved. 700 Indian Springs Drive, Lancaster, PA 17601.