Google Inc (NASDAQ:GOOG), one on the largest and the most renowned search engines is re-considering its plans for job cuts from its Motorola Mobility unit outside the U.S. The company confirmed its intentions of revising the regions in a filing with the Securities and Exchange Commission, “the Motorola restructuring is now expected to include additional geographic regions outside of the U.S.”
The company had earlier in August planned to close or consolidate about one-third of Motorola's 90 locations, while adding the 4,000 layoffs. The company had then charted an approximate of two-thirds of the job cuts which would be like 20 percent of the Motorola’s employees and 7 percent of Google's overall work force. However, this was restricted only few regions outside U.S. Now, the company intends to take $390 million in severance costs and other charges related to the layoffs.
Dating back, Google Inc. had bought Motorola Mobility in late May for $12.4 billion. Being the largest acquisition ever, this possession not only helped Google to widen its business from the root level, but also made the company develop phones running on the Google's Android operating software. These phones were obviously made by Motorola. However, the acquisition was not so much fruit-bearing as it could not compete hard with rivals such as Samsung Electronics Co. who have been ahead and more successful.
Of the $390 million charges announced on Thursday, about $300 million of the charges are related to dismissal payments and the remaining about $90 million are for the cost of closing facilities through 2013. The company intends to take the severance charges and around $40 million from the cost of closing facilities in the third quarter. This would raise Google's cost for the restructuring. As Motorola evaluates its plans, the company could make even more cuts. This could result in more "significant" charges, Google said.