Two-thirds of the 4,000 positions being cut from the unit — which primarily makes Android mobile phones — will be outside the U.S., Google says this morning in an SEC filing. It also plans to close or consolidate a third of its 90 facilities as it shifts its emphasis from feature phones to what it calls “more innovative and profitable devices.” Google says this will result in a severance-related charge of as much as $275M — as well as other expenses — most of which it expects to recognize in Q3. The company says that “these additional charges could be significant,” but it can’t say how high they might go. “These changes are designed to return Motorola’s mobile devices unit to profitability, after it lost money in fourteen of the last sixteen quarters,” Google says. Still, it warns that “investors should expect to see significant revenue variability for Motorola for several quarters. While lower expenses are likely to lag the immediate negative impact to revenue, Google sees these actions as a key step for Motorola to achieve sustainable profitability.” Last year Google agreed to pay $12.5B for Motorola Mobility, which is also a leading manufacturer of cable set top boxes. Google shares are up slightly in pre-market trading.
Google Cuts One-Fifth Of Motorola Mobility Workforce In Effort To Make It Profitable
What's Hot on Deadline
Shania Twain Clarifies Comments On Supporting Trump, Says She's "Passionately Against Discrimination"
'A Quiet Place' Still Noisy With $21.7M As 'Rampage' Beats Chest, 'Super Trooper 2' Surprises - Sunday AM Update
'Smallville' Actress Allison Mack Arrested In Sex Trafficking Scheme, Faces 15 Years To Life If Convicted
Hallmark Channel Upfront Presentation Canceled Due To Storm; Net Makes Announcements, Including ‘When Calls the Heart’ Renewal, At Central Park Event
'Rampage' Rounds $216M Overseas; 'A Quiet Place' Cranks WW Volume To $207M - International Box Office
Latest Film News
- Deadline Studio at Tribeca 2018 – Part 2: John Legend, Jeffrey Wright, Alia Shawkat, Jay Ellis & More
- Andrea Nevins Documents Moment Of Barbie’s Transformation With ‘Tiny Shoulders’ — Tribeca Studio
- ‘Rampage’ Rounds $216M Overseas; ‘A Quiet Place’ Cranks WW Volume To $207M – International…
- ‘The Caretaker’ Filmmakers Launch VR Company Hidden Content At Tribeca
- Sarasota Film Festival Caps 20th Anniversary Edition With Jury Prizes For ‘I Am Not A Witch’ And ‘Minding The Gap…
- British Politicians Urge Inclusion Riders To Be Introduced To Secure Film & High-End TV Tax Relief