Google's layoffs in Motorola to set it back $275 million for "generous severance packages"
These changes are designed to return Motorola’s mobile devices unit to profitability, after it lost money in fourteen of the last sixteen quarters. That said, investors should expect to see significant revenue variability for Motorola for several quarters. While lower expenses are likely to lag the immediate negative impact to revenue, Google sees these actions as a key step for Motorola to achieve sustainable profitability.
Motorola understands how hard these changes will be for the employees concerned and is committed to helping them through this difficult transition. Motorola will be providing generous severance packages, as well as outplacement services to help the employees find new jobs. Google expects to incur a severance-related charge of no greater than $275 million, which it believes will be largely recognized in the third quarter, with the remaining severance-related costs recognized by the end of 2012. Google also expects to incur other restructuring charges related to the actions described above, the majority of which will be recognized in the third quarter. Although Google cannot currently predict the amount of these other charges at this time, these additional charges could be significant.
1. denied911 (banned) (Posts: 361; Member since: 31 May 2012)
"Google's shares were up almost 3% yesterday"
I think that people are starting to see some good necessary changes in moto
2. MeoCao (unregistered)
Wow, that's what Google is about: Don't be evil!
4. speckledapple (Posts: 879; Member since: 29 Sep 2011)
No one likes losing their job but if they were given at least a nice little package to leave with, it is not as bad. I am sure most will probably not have a problem finding a new job as they did work for Moto.
5. snowgator (Posts: 3209; Member since: 19 Jan 2011)
It is sad to see Moto employees faced with this, especially as the job market continues to be crap. My Wife lost her position just recently, and had plenty of "heads up" it was coming. Still not finding a job, and it is not easy to even find decent openings to apply for.
Like that Google is at least cushioning the blow with packages, but it is still a bad situation. Totally understand Google is doing what they need to.
Find it interesting Google may be axing the tablets. Every other hardware company is dying to compete in that market. Guess Google just wants to play to it's strengths, but what signal does that send to Android tablet manufacturers when the designer of the OS only wants to focus on smartphones?
7. Sniggly (Posts: 7016; Member since: 05 Dec 2009)
I can understand why. Motorola has been doing great with its smartphone designs and their phones are picking up sales, but their tablet presence has been, sadly, rather dismal. From the Nexus 7 Google clearly wants tablets to be produced, just not by Motorola.
6. JunitoNH (Posts: 899; Member since: 15 Feb 2012)
No.……… not the tablet department. Who is going to make the highly successful Xoom now? I'll miss all the funny shape devices by Moto.
8. Sniggly (Posts: 7016; Member since: 05 Dec 2009)
Note to haters: this is NOT what "shafting" employees looks like.