In a document filed with the Securities an Exchange Commission, Google said its cellphone manufacturer Motorola Mobility will eliminate 4,000 jobs — or 20 percent of its workforce. Two-thirds of the layoffs are set to occur outside of the U.S.
The document also said that Motorola plans to close or consolidate about one-third of its 90 facilities and simplify its mobile product portfolio, shifting the emphasis from feature phones to more innovative and profitable devices.
The cuts are meant to return Motorola’s mobile devices unit to profitability after it lost money in 14 of the last 16 quarters.
Google expects to incur a severance-related charge of no greater than $275 million that will be largely recognized in the third quarter, with remaining severance-related costs recognized by the end of 2012.
Almost exactly a year ago Google agreed to buy Motorola Mobility for $12.5 billion, its biggest acquisition to date.