August 13, 2012
Google Inc. will cut about 4,000 jobs at its Motorola Mobility Holdings Inc. unit, or 20 percent of the staff at the company it bought for about $12.5 billion.
Two-thirds of the reductions will be outside the U.S., the Mountain View, California-based company said in a regulatory filing today. Google will also shut down about one-third of Motorola Mobilityâ€™s 90 facilities and simplify its wireless product portfolio, it said. Google said the measure will incur severance-related costs of no more than $275 million.
Larry Page, who became the chief executive officer of Google last year, is streamlining the company as it pushes into the hardware market. Google, owner of the worldâ€™s most-popular search engine, completed the takeover of Motorola Mobility in May in its biggest takeover, boosting its patent portfolio and stepping up competition with competitor Apple Inc.