After announcing over the summer plans to downsize Motorola Mobility’s workforce by 20 percent, Google now says more job cuts are coming for the company it purchased last year for $12.5 billion. The announcement comes amidst Google’s decision to cut back operations in unprofitable markets in Asia, a reduction in the number of smartphone models offered each year, and a focus on higher-end devices.
Google says the latest round of cuts will cost the company some $340 million in severance and other associated costs, with the possibility of more losses down the road at the hands of Motorola’s restructuring. Whether or not the move comes as further proof that Google bit off more than they could chew in acquiring a hardware manufacturer, the shift aims to create a more streamlined, profitable venture in Motorola.
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TAGS: acquisitions, stocks