Internet giant Google has planned to cut about 4,000 jobs at its Motorola Mobility unit, which accounts for around 20 percent of the company’s staff among its 20,000 employees. The firm also plans to shut down about one-third that accounts for 30 of Motorola mobility’s 90 facilities. The decision came in effect as Google continues to seek focus on the sale of its Android devices.
Google sees these actions as a step to get Motorola units into profits after it lost money in 14 of the last 16 quarters. The firm revealed cutting down on the number of devices in Motorola’s lineup as part of a consolidation effort.
Experts at Google state that the firm expects to see a charge of no more than $275 million related to the cuts.
The California-based company announced that two-thirds of the reduction will be outside the US. As reported in the New York Times, Google plans to cut operations in Asia and India. The firm plans to focus on development in Beijing and will also make a development push in Chicago and Sunnyvale, California.
Google, owner of the most popular search engine acquired Motorola in May for a price of $12.5 billion, which was the biggest takeover of the firm. This acquisition also stepped up Google into the foray of mobile device, landing in direct completion with Apple.
This deal gave Google a trove of patents accounted for $5.5 billion of the total pricetag. This acquisition of so many patents is believed to help the firm stay protected against an increasing number of intellectual property lawsuits.
In taking over Motorola, Google’s plans seem to leave an impact on the smartphone network. It has left many people wondering as to how the acquisition will affect other Android partners.
However, shares for Google were also noted to go up slightly in pre-market trading, rising $7.20 to $649.20.