Google says that its recently announced restructure of its Motorola Mobility hardware business will cost at least $US275 million before the end of 2012, in a filing to the US Securities and Exchanges Commission.
The losses are the result of a major restructure of the business, which will see Motorola slash 4,000 jobs, representing one-third of its worldwide workforce.
The restructure costs come on top of Motorola’s record $233 million second quarter loss, or more than $US2.5 million a day, with the smartphone maker recording losses in 14 of the past 16 quarters.
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In an 8K form filed with the US SEC, Google announced:
“Motorola will be providing generous severance packages, as well as outplacement services to help the employees find new jobs.”
“Google expects to incur a severance-related charge of no greater than $275 million, which it believes will be largely recognized in the third quarter, with the remaining severance-related costs recognized by the end of 2012.”
“Google also expects to incur other restructuring charges related to the actions described above, the majority of which will be recognized in the third quarter. Although Google cannot currently predict the amount of these other charges at this time, these additional charges could be significant.”