Back in May, Google sealed the $12.5 billion dollar deal to acquire Motorola, a move largely inspired by the latter’s patent portfolio as opposed to their, uhm, stellar mobile performance.
We’ve been wondering what exactly Mountain View has planned for Moto, but so far the biggest change is a bunch of job cuts. Eek.
Over on Reuters, it’s reported that severance-related charges for the 20% chop will be 9% higher than anticipated, hitting a whopping $300 million. Google warns that further cuts might incur an additional $40 million.
A slightly ominous company statement reads: "Motorola has continued to refine its planned restructuring actions and now expects to broaden those actions to include additional geographic regions outside of the U.S."
Motorola’s mobile division has lost money in 14 of the last 16 quarters. Google is evidently hoping to turn things around with a spot of downsizing, and we’re promised more of a focus on smartphones.
However, Needham & Company analyst Kerry Rice muses: "There's some lack of fully understanding beyond those patents what there is for Google to do with Motorola."
To be fair, Motorola’s past few announcements have been pretty decent, and it’s one of the few manufacturers that realises people want big chunky batteries.
Incidentally, we’re hoping to review the Motorola Razr i soonish. Stay tuned