Google confirms Motorola job cuts, will offer ‘generous severance packages’

August 14, 2012
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    Participants are seen in a Motorola stand at the 2012 Mobile World Congress in Barcelona. Google, which has acquired Motorola Mobility, has confirmed layoffs to streamline production, promising “generous severance packages” and outplacement assistance (AP Photo/Manu Fernandez).

    We earlier reported on Google’s plans to streamline operations at recently-acquired Motorola, which will include 4,000 layoffs and closure of a third of its facilities around the world. Google has just confirmed this through a SEC filing (actually submitted earlier this month). While thousands of employees will be getting the pink slip, it seems they won’t leave empty-handed.

    In a form 8-K filing with the SEC, Google says two thirds of its layoffs will be in Motorola facilities outside of the U.S. Employees who would be laid off are to be given “generous severance packages” by Motorola. Google also plans to help downsized employees find jobs elsewhere through an outplacement assistance program.

    Google expects to foot a total bill of $275 million from the downsizing activity for the third quarter of 2012 alone. The search giant says the amount could grow, depending on the actual turnout, and whether the downsizing will extend past Q3 2012.

    Google is doing all this to streamline its operations and focus on returning to profitability, after being in the red in the last 14 out of 16 quarters. The company wants to move “emphasis from feature phones to more innovative and profitable devices,” and thinks that being able to focus on fewer flagship devices will help Motorola’s profitability in the long run.

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    Comments

    • AndroidBrian

      Severance packages in this economy are never “generous”.

      • jangeloracoma

        Well, Google supposedly has generous death benefits, including 50% of the employee’s salary for 10 years (paid to the spouse or beneficiary) and $1k per dependent per month. So perhaps the severance packages will be adequate, as well.

        • Arturo Carter

          Thats pretty good

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