Google takes a break from suing other companies over phone designs using patents it acquired from Motorola to lay off 4,000 employees, or 20 percent of the company's work force. Google says that this reduction is part of a larger restructuring plan that will ultimately see the closure of one-third of Motorola’s 90 offices.
By the end of it, Google hopes to make Motorola more competitive with smartphone leaders like Apple and Samsung. The costs of the cuts won't go over $275 million this year, according to a recent filing by Google with the Securities & and Exchange Commission (SEC). Many of the jobs that have been cut were based in the United States.
The move is not surprising, given that Motorola has seen its phone business nosedive for 14 of the last 16 quarters. Given that some of that $12.5 billion acquisition price tag Google spent was to secure Motorola’s 17,000 patents, it's not that shocking that the company would start slashing costs by reducing staff. In the most recent quarter, Motorola generated $1.25 billion in revenue for Google.
Source: GIGA OM