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Google (NASDAQ:GOOG) said it had identified additional areas in Motorola Mobility’s business where it planned to cut staff in its continuing attempts to restructure the newly acquired unit. It also expects to spend $390 million in severance and other related costs and said additional changes may result in other “significant” charges.
“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,” the search company said in a filing with the U.S. Securities and Exchange Commission, according to Reuters.
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It added that most cuts would be based outside of the U.S. Google had earlier said it planned to pare down Motorola’s Asia operations through dropping certain devices and exiting several unprofitable markets. “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.,” the filing said.
Of the expected expenses, $300 million will involve employee severance, while another $90 million is likely to be spent on “facility and market exits.” About $40 million of these charges are expected to be taken in the third quarter.
Google acquired Motorola for $12.5 billion last year with the hope of pairing the manufacturer’s smartphone and tablet business more closely with its Android software and have a better chance at taking on Apple (NASDAQ:AAPL). It has already said it expected to cut about 4,000 jobs at Motorola and close or consolidate about one-third of its 90 locations.
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