Google Slashes Twenty Percent of Motorola’s Work Force

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


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One comment

  1. 0
    Davvolun says:

    So the end of the article admits that Motorola needs some changes to stay afloat, but it starts with a weasely attack? The truth is that Google is at least no worse than Apple or Microsoft for suing based on patents, and, very unfortunately, the only way to protect yourself in this game is to acquire patents left and right, otherwise someone is going to sue you. Don't blame Google over playing the game in a broken system; or better yet, blame Google, but blame everyone else too. And maybe fix the system.

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