SAN FRANCISCO: Google Inc plans to cut about 4,000 jobs at its Motorola Mobility Holdings Inc. unit, or about 20% of the staff at the company it bought earlier this year, according to a person familiar with the matter.
Two-thirds of the reductions will be outside the U.S., said the person, who declined to be identified because the matter isn’t public.
Google is also shutting down about one-third of Motorola Mobility’s facilities, said the person. Motorola, which told employees yesterday of the cuts, will make the changes during the next few weeks, the person said.
“Motorola is committed to helping them through this difficult transition and will be providing generous severance packages, as well as outplacement services to help people find new jobs,” Motorola Mobility said in an e-mailed statement without specifying the number of job cuts.
Larry Page, who became the chief executive officer of Google last year, is streamlining the Mountain View, California- based company as it pushes into the hardware market. Google, owner of the world’s most popular search engine, paid about $12.5 billion to buy Motorola Mobility in its biggest takeover. The deal closed in May.
Google has also shaken up the Motorola management, letting go 40 percent of its vice presidents, said the person.
Motorola said it expects this strategy to create new opportunities and help return its mobile devices unit to profitability. It also understands how hard these changes will be for employees, the company said. (Bloomberg/tw)