Google's layoffs in Motorola to set it back $275 million for "generous severance packages"

Google's layoffs in Motorola to set it back $275 million for
As it turned out yesterday, Google's purported hands-off approach at Motorola continued only until the deal went through with all the authorities involved, and now the search giant is getting down to business.

Right off the bat it is slashing 4, 000 jobs across the board, and rumors are that more cuts will follow in departments Google deems unnecessary for the core function of Moto, and it is producing smartphones, as the tablet business is allegedly also getting the ax at some point, while Motorola will be concentrating on fewer but more focused handsets.

These layoffs are projected to cost Google no less than $275 million, as SEC filings revealed yesterday, sending Motorola's employees out with well-padded severance packages. Google said it will recognize those layoff charges in the third quarter financial results, and investors might see tumultuous revenue streams at Moto for several quarters after, until Google clears up its strategy what to do with the phone maker besides using it as a patent litigation shield:

Google's shares were up almost 3% yesterday with a down market, as stock prices usually react on such broad layoffs that result in significant cost-cutting in the employee compensation pool.

source: SEC

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7 Comments

1. denied911

Posts: 361; Member since: May 31, 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: 902; Member since: Sep 29, 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: 3616; Member since: Jan 19, 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: 7305; Member since: Dec 05, 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: 1946; Member since: Feb 15, 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: 7305; Member since: Dec 05, 2009

Note to haters: this is NOT what "shafting" employees looks like.

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