Google announced and confirmed in an SEC filing that it has planned to cu t at least 4,000 employee’s from the recent acquisition of Motorola. That’s about a fifth of Motorola’s workforce. Not only that, but it’s going to cost Google some money to do. It’s going to cost them a whopping $275 million. That’s a lot of money to fire 4,000 employee’s. Google is expecting most of the shares to take place in the third quarter which I presume is when they’ll finish getting rid of all 4,000 employee’s. Google also has plans to close around 30 facilities that were not very beneficial. They are trying to “simplify its mobile product portfolio, shifting the emphasis from feature phones to more innovative and profitable devices.” That statement is the reason why they no longer need those 4,000 employee’s, it also probably has a lot to deal with thirty facilities closing down.
Getting rid of 4,000 employee’s and 30 different buildings isn’t going to immediately turn things around. Google has noted that Motorola Mobility has lost money out of 14 of the last 16 quarters. That’s everything but six months in the last four years. While these are cuts are a “key step” on getting Motorola back onto the road of profitability, “investors should expect to see significant revenue variability…for several quarters.” Would anyone agree with me that Google is trying to build a Google Empire?
All of this does affect real people, as you all know. With Google vast amount of resources though, the company says that they will be giving out “generous” severance packages along with job placement services. At least Google isn’t just sending them on their way, right? Either way, that’s still 20 percent of the Motorola workforce that’s just about to be put out of work. If you’ve read about Google’s new death benefits, I think you would expect them to treat the layoffs with a little dignity and respect. At least Google is living up to it’s reputation when it comes to respect, eh?
If you read our last article on an Ex-Employee saying that Google was harder to work with after the acquisition, this just seems like another step into making their own Google phones. In fact, it’s almost obvious that this may just be what they are trying to head towards. Getting Motorola on the right direction financially to me just seems like a huge step in that direction.
In other news, Google is probably going to make it to #1 when it comes to being the top company to work for. There is definitely no doubt about that coming from me!
Whatever ends up happening in the next couple of months with Motorola, do you think that Google is taking the right steps to get the company back in the right direction both financially and when it comes to making phones? Personally, I think this was probably their only way of getting back on track when it comes to earning revenue. It was pretty ridiculous to hear that they lost so much in 14 out of 16 quarters.
Let us know your thoughts in the comments below!