Canadian Manufacturing

Google expanding Motorola job cuts outside US, to take $390M charge for severance, exit costs

About $300-million of charges related to severance payments; will be taken in third quarter



NEW YORK—Google says it is expanding its plan to cut jobs from its Motorola Mobility unit outside the U.S. and will take $390-million in charges related to the layoffs.

Google Inc. said in August that it would cut about 4,000 jobs at Motorola, three months after buying the cellphone maker.

It said then that it planned to close or consolidate about one-third of Motorola’s 90 locations, and that two-thirds of the job cuts, about seven per cent of Google’s overall work force, would take place outside the U.S.

About $300-million of the charges announced are related to severance payments and will be taken in the third quarter.

The Mountain View, Calif., company also expects to pay about $90-million in charges for the cost of closing facilities through 2013.

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