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Google Warns of Higher Costs from Motorola Mobility Redundancies
Published on:
As previously reported, Google says that it expects to incur certain charges in connection with planned office closures around the world at its wholly-owned subsidiary Motorola Mobility.
Motorola has continued to refine its planned restructuring actions and now expects to broaden those actions to include additional geographic regions outside of the USA.
Based on current information, Google expects to incur severance-related charges of approximately $300 million, which will be recognized in the third quarter of 2012 and of which approximately $250 million is expected to be paid in cash, and other charges related to facility and market exits, primarily in cash, of approximately $90 million in 2012 and 2013, of which approximately $40 million is expected to be recognized in the third quarter of 2012.
The company is cutting around 4,000 jobs worldwide.
Google added that Motorola continues to evaluate its plans and further restructuring actions may occur, which may cause Google to incur additional restructuring charges, some of which may be significant.
Tags: [motorola mobility] [google]
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