Google’s axe man stares down at Motorola Mobility unit

Companies that are bloated all the way from the top to the bottom will not be able to thrive these days, considering how being lean and mean is the way to go. Well, after acquiring Motorola Mobility some time ago, Google has started to look long and hard at the number of staff on Motorola Mobility’s payroll, deciding that the entire operations was still not lean enough. In fact, Google has stepped forward to say that the upcoming recommended cuts for their Motorola Mobility unit will be broader than what they first thought, and are willing to fork out nearly $300 million on severance charges compared to the $275 million that they cited to investors in August earlier this year.

Not only that, Google will also pony up an additional $90 million on “other charges related to facility and market exits,” without giving any guarantees that these cuts will be final, meaning that additional chop-chop sessions and bloated charges could be in the pipeline, where “some of which may be significant.” You know what they say, it is darkest right before the dawn, so hopefully all of these seemingly painful measures will result in Motorola being back in the black.

Edwin Kee
Categories: Cellphones
Tags: Google, Motorola