Google warns of more job cuts at Motorola Mobility, increases Q3 severance cost estimates

“Google Inc revised up the bill for job cuts at its money-losing Motorola Mobility mobile phone unit in the third quarter and warned of further restructuring that may result in ‘significant’ additional charges,” Reuters reports.

“Google raised its estimates for severance-related charges 9 percent to $300 million from $275 million and warned it faced another $40 million in other costs in the quarter to quit facilities and markets,” Reuters reports. “Google bought Motorola last year for $12.5 billion, with the aim of bolstering its patent portfolio in the intellectual property fight its Android mobile system faces with rivals Apple Inc and Samsung Electronics Co Ltd.”

MacDailyNews Take: It would have been cheaper, not to mention less evil, to have kept working on knocking off BlackBerry instead of switching to iPhone.

Reuters reports, “But the Internet search giant has found itself lumbered with a restructuring headache, saying in August it would cut 20 percent of the Motorola Mobility workforce as it moves to make more smartphones and fewer simple mobiles… Last year’s purchase of Motorola raised investor concerns at the time that the software firm was buying into a hardware business with much lower profit margins and in which it had little experience.:

Read more in the full article here.

Here’s what Google’s Android looked like before and after Apple’s iPhone:

MacDailyNews Take: Google Android before and after Apple iPhone


      1. It has just occurred to me that Android may have been less successful as a BBOS knock-off than they have been with the iOS. In a longish stretch, they probably wouldn’t have bought off MMI, i.e., and lay off a good many folks; thereby, less evil work etc.

      2. Listen I’m a former blackberry user and fan. They made a great phone in a time when that is what was achievable at least by RIM. It was a great phone for the early 2000 – 2007 time frame. Then Apple changed the game. RIM to thier credit did not steal tech from Apple as others have. Nor did Apple steal from RIM. Google planned to steal from RIM the evidence is clear. Apple changed that by moving the line of what could be done. I’m sad for RIM as they failed to innovate and to inspire. However they have been much more of innovator than the copy cats have. Respect is deserved for RIM but clearly no one ever thought it is good for anyone to steal tech. That’s really the point don’t steal IP just innovate.
        Don’t innovate and die

        Imagine what can be done and just do it. While the iPhone and iPad are amazing things can always get better. It is completely possible a couple of guys can come along and turn the industry on its ear again so long as they don’t steal the tech from someone else.

  1. MDN.. too funny! Google Inc. is doing what every company does after they purchase another company and that is introduce costs savings and remove redundancies. Motorola is a cry strong player and frankly their devices are top shelf.

    FYI, shipped back 2 iPhone 5’s this AM. Will stick with 4S. Speed aside which does nothing for 99% of us who do not surf the web on a 4″ from factor device, the 4S with iOS 6 is still King.

    1. Nearly everything is faster, not just web surfing in Safari. And I seriously doubt that 99% of people who own an iPhone aren’t surfing the web on it. That would imply that 99% of iPhone owners also own a tablet or wait until they’re near a computer to surf the Internet.

      1. Bingo! iPad without a doubt is widely used but not iPhone. Google Analytics speaks to this extensively on most major websites. My phone is just that a phone with access to emails.

    2. The slightly larger screen size, faster processor and better screen make the iPhone 5 definitely worth having. I had an Phone 4 so appreciate the upgrade. If I had a iPhone 4s I might not have appreciated the difference as much. The slightly longer screen though is pretty tits.

  2. Google says it has earned 550 million from android (ads, services) since 2008 or about 100 million a year.

    It has spent 12500 million buying Motorola.
    Motorola has lost money 14 out of 16 past quarters.

    It will take 100 years of android profits to pay off Motorola .

    Most of Motorolas key patents are FRAND compromised.
    Motorola has added about 30% more staff to Google all of whom have different work ethos.

    Page and Schmidt did the deal.

    And somebody said Fire Tim Cook over maps?

  3. Must be funny to fire people.
    Google wanted the patents but got so much crap with this acquisition. I think that over time this will prove to be a bad and challenging acquisition again.

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