Dec, 10 2012

As part of continued efforts to trim down the operations of Motorola Mobility after acquiring the company last year, Google has confirmed it plans to cease the majority of the division’s operations in South Korea in 2013.  The move, which Google described as “difficult but necessary,” will see the end of Moto’s R&D and mobile device marketing departments and result in the loss of around 500 jobs.

The news comes just months removed from a proposed restructuring that would cut some 4,000 jobs as efforts shifted toward refocusing Motorola Mobility’s product offerings. There has also been talk that Google is shopping Motorola’s Home division to potential buyers in hopes to further lighten the $12.5 billion load.

Google points towards slimming margins as reason for the closures. The tech giant hopes cutting expenses will lead to greater profit, but warns investors to expect “significant revenue variability” in the meantime.

Motorola’s wide patent portfolio was a driving force behind what many analysts have called a knee-jerk reaction on Google’s part. The deal hasn’t paid off for the two companies just yet. As evidenced by these downsizing efforts, Google may have bit off a bit more than they could chew.

[via AllThingsD]

local_offer    Motorola