Google to make deep cuts at Motorola

August 13, 2012

Google is planning to cut 4,000 jobs from Motorola Mobility, around 20 percent of the division’s 20,000 employees.

In a filing with the Securities and Exchange Commission dated Aug. 3, the company said it plans to trim around one-third of all its facilities — by cutting or consolidating — in order to get Motorola back into the black. Google said it expects to see a charge of no more than $275 million related to the cuts.

Two-thirds of the reduction will happen outside of the United States, the filing said. According to a report from the New York Times, the company is focusing on cutting operations in Asia and India, will focus on development in Beijing and will also make a development push in Chicago and Sunnyvale, Calif.

Google also said that it will be cutting back on the number of devices in Motorola’s lineup as part of its consolidation effort.

The tech giant finalized its $12.5 billion acquisition of Motorola in May, when it named Dennis Woodside as its chief executive. It was Google’s largest-ever acquisition and its first foray into hardware.

As part of the deal, Google got its hands on Motorola’s extensive patent portfolio, though patents only accounted for $5.5 billion of the total pricetag. The acquisition of so many patents is likely to help the company defend against an increasing number of intellectual property lawsuits.

Google’s plans for Motorola could have a large impact on the smartphone ecosystem, since many are trying to figure out how the acquisition will affect other Android partners.

Shares for Google are up slightly in pre-market trading, rising $7.20 to $649.20.

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Hayley Tsukayama covers consumer technology for The Washington Post.
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