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It looks like Google isn’t quite done trimming the fat from Motorola.
In August, the company slashed 4,000 jobs (20 percent) of Motorola’s global workforce. Meant to cut expenses, the move was one of many efforts by Google to slim down Motorola, which reported an operating loss of $233 million during the second quarter.
But that wasn’t the end of the cuts. Google is upping its estimated severance costs to $300 million, a nine percent increase from its previous estimate of $275 million.
Alongside the job cuts, Google also expects to shell out another $40 million to help Motorola exit unprofitable markets and close facilities. As with exercise, sometimes you have to spend a little energy to slim a company down.
“Motorola has continued to refine its planned restructuring actions and now expects to broaden those actions to include additional geographic regions outside of the U.S.,” Google said in a statement.
While cutting jobs is one way to save money, Google’s other efforts have involved reducing the number of devices that Motorola churns out. This new strategy was most evident with last month’s announcements of the Droid Razr HD, Droid Razr Maxx HD, and Droid Razr M.
With the devices, Motorola said it was focusing on what it saw as the three key smartphones features — battery life, LTE-support, and, predictably, Android. While the jury is still out on whether that strategy has been an effective one, it’s certain that Motorola has saved itself a lot of money by not flooding the market with devices that no one cares about.
Photo: Ricardo Bilton/VentureBeat