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Google to cut 4,000 Motorola jobs

Google plans to cut 4,000 Motorola Mobility jobs – approximately 20% of the workforce – as part of a dramatic overhaul of the smartphone maker, it emerged at the weekend.

"Motorola understands how hard these changes will be for the employees concerned and is committed to helping them through this difficult transition," read Google's SEC filing. "Motorola will be providing generous severance packages, as well as outplacement services to help the employees find new jobs."

Google said it expects to incur a severance-related charge of around $275 million, which it will book largely in the third quarter.

Google CEO Larry Page made no secret of the fact that Moto's 17,000-strong patent portfolio and the protection it would give to the Android operating system was one of the primary reasons for Google's $12.5 billion acquisition of the company in August 2011. Now it seems more attention is being paid to how the business operates.

The cuts form phase one of a broader turnaround plan that will see Motorola cease development of low-end devices in favour of smartphones and cut down its portfolio to just a few devices, rather than dozens.

"The Google business is built on a wired model, and as the world moves to a pretty much completely wireless model over time, it's really going to be important for Google to understand everything about the mobile consumer," explained Motorola Mobility chief executive Dennis Woodside, in the New York Times report.

His ambition is to make Motorola smartphones more desirable by focusing on high-end features like sensors that can recognise individual voices, advanced camera technology, and batteries that last for days.

It is hoped that the tweaked strategy will return Motorola to profitability – it has reported a loss in 14 of the last 16 quarters – and help it claw back lost ground on market leaders Samsung and Apple.

After closing the acquisition in May, Motorola's financials were presented alongside Google's second quarter results. The Internet giant did not disclose shipment volumes, but did report Motorola's $233 million operating loss.

In the first quarter of 2012, Motorola shipped 5.1 million smartphones, not enough to break into the world's top five, according to figures from IDC, which in the three months ended 31 March was led by Samsung with 42.2 million, followed by Apple on 35.1 million. Taiwan's HTC took the number five spot with shipments of 6.9 million.

Samsung widened its lead in the second quarter, shipping 50.2 million devices to Apple's 26.0 million.

Источник: Total Telecom

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