Google has released a statement confirming the worst fears of thousands of Motorola Mobility workers. Over the coming months, the search engine giant is to shed no less than 4,000 posts – approximately 20% of the current workforce – while closing around a third of its global offices.
Having first been reported yesterday by the New York Times, Google has now confirmed the bad news to the world.
Difficult Transition
“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 the statement released by Google.
According to official documentation, the major of job cuts will affect overseas workers and offices, with approximately one third falling within the United States. What’s more, Google also revealed in further documentation detailing the company’s future plans that it is to “simplify its mobile product portfolio — shifting the emphasis from feature phones to more innovative and profitable devices.”
Return to Profitability
Google has stated that its intention is to return Motorola Mobility to a prior status of heavy profitability, according to the filing dated August 3rd. The series of layoffs is expected to cost Google dearly with some charges to reach upwards of $275 million – most of which will come about before the end of Q3.
Earlier this year, Google acquired Motorola Mobility for $12.5 billion, representing the biggest single buyout in the company’s history. In order to streamline and focus its future ambition, Google now intends to close at least 30 Motorola Mobility offices across the world. According to unconfirmed reports, the closures will see operations significantly reduced in India and Asia, while development facilities in California, Chicago and Beijing will receive increased focus.
Motorola Mobility executives have stated that it is Google’s primary goal to move away from lower-end devices targeting the less profitable markets, so as to concentrate on a smaller number of high-end Smartphones, rather than hundreds.
Google certainly has the means to come up with the goods, having obtained no less than 17,000 patents from Motorola Mobility as part of the acquisition.
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