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
Global Scam Ravaging Hollywood: Silver-Tongued Imposter Poses As Top Female Producers To Catfish Victims
'Black Panther' Director Ryan Coogler Writes Letter Of Gratitude After Film's Record-Breaking Weekend
Oprah Winfrey Answers Call & Joins Clooneys, Katzenbergs, Spielberg And Capshaw In Donating $500,000 To March For Our Lives: Who's Next?
Donald Trump Unleashes Base On Jeff Sessions With Tweet Demanding DOJ Investigate Obama In Russia Probe
Latest Film News
- ‘The Domestics’ Special Effects Coordinator Says He Shares Blame in “Wigging” Incident
- Meryl Streep Rips “Pathetic” Harvey Weinstein For Using Her Name In Lawsuit
- Guillermo Del Toro Denies ‘Shape Of Water’ Was Influenced By 1969 Play: “I Never Saw It”
- Director Roland Joffé Inks With Gersh
- ‘Annihilation’ Review: Natalie Portman Ramps Up The Action In Alex Garland’s Smart, Scary Journey Into…
- Safety Panel Urges New Culture To Speak Out; Joyce Gilliard Reveals Horrifying Details Of ‘Midnight…