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Now even Google announces cuts of 4,000 for Motorola

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Cuts aimed at returning company to profitability.

Google has announced they're cutting jobs at the newly-acquired Motorola Mobility. Motorola will shed 20 percent of its workforce and a third of its offices worldwide. A third of the jobs to be lost will be in the US, with the remainder overseas. 

Highlights

By Catholic Online (NEWS CONSORTIUM)
Catholic Online (https://www.catholic.org)
8/14/2012 (1 decade ago)

Published in Business & Economics

Keywords: Google, Motorola, profits, mobile, jobs, cuts

SUNNYVALE, CA (Catholic Online) - Google said the move is to return the mobile giant to profitability, referencing how the company has lost money in the last fourteen of sixteen quarters. Google expects to suffer an immediate loss on the move, but also expects to see a long-term trend towards profitability. 

Google has promised to help give laid-off employees as soft a landing as possible. "Motorola is committed to helping them through this difficult transition and will be providing generous severance packages, as well as outplacement services to help people find new jobs," according to a spokeswoman for Google. 

Some of the closures will occur overseas, in China and India. 

Motorola will also narrow its work to just a few high-quality mobile devices. Until now, Motorola has consistently produced a wide range of devices with varying capabilities and prices. Now, the company is being directed to work on a few high-end devices. And Motorola will be exiting markets that are deemed "unprofitable." 

As a final gesture, some 40 percent of the company's vice presidents have also been discharged, although a number of senior executives have been hired. 

In all, the cuts are expected to increase efficiency, and hone the focus of the struggling mobile giant.

Google acquired Motorola in 2011 in an effort to protect itself from patent lawsuits, which are common in the mobile development industry. 

Google is the world's largest search engine provider, and has expended operations into a wide range of fields, including mobile development over the past several years. Unfortunately, these endeavors have been difficult, and only rarely successful. Still, Google remains one of the world's most profitable companies, money that allows it to buy new subsidiaries and develop innovative new products. 

 

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