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Thursday, 4 October 2012 - Google warns of more Motorola cuts, revises up third-quarter bill |
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      Edition: U.S. Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom Home Business Business Home Economy Technology Media Small Business Legal Deals Earnings Social Pulse Business Video The Freeland File Aerospace & Defense Markets Markets Home U.S. Markets European Markets Asian Markets Global Market Data Indices M&A Stocks Bonds Currencies Commodities Futures Funds peHUB World World Home U.S. Brazil China Euro Zone Japan Mexico Russia India Insight World Video Reuters Investigates Decoder Politics Politics Home Election 2012 Campaign Polling Supreme Court Politics Video Tech Technology Home MediaFile Science Tech Video Tech Tonic Social Pulse Opinion Opinion Home Chrystia Freeland John Lloyd Felix Salmon Jack Shafer David Rohde Nader Mousavizadeh Lucy P. 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See the best of Reuters photography.  See more | Photo caption  The surface of Mars The continuing search for signs of life on the Red Planet.  Slideshow  Mennonites in Mexico Over 80,000 Mennonites live in communities across Mexico.  Slideshow  Google warns of more Motorola cuts, revises up third-quarter bill Tweet Share this Email Print Related News Merged T-Mobile USA, MetroPCS to face tech challenges Wed, Oct 3 2012 Deutsche Telekom in T-Mobile USA-MetroPCS merger talks Tue, Oct 2 2012 RIM delivers pleasant surprise to investors; shares surge Thu, Sep 27 2012 Apple sells over 5 million iPhone 5, supply constraints loom Mon, Sep 24 2012 Apple iPhone 5 fever rages despite grumbling over maps Fri, Sep 21 2012 Analysis & Opinion In India, a press corps searching for its morality iPhone 5 will live up to the hype – in time Related Topics Tech » Media » Google Chairman Eric Schmidt speaks at a Motorola phone launch event in New York, September 5, 2012. Credit: Reuters/Brendan McDermid Thu Oct 4, 2012 8:18am EDT (Reuters) - Google Inc revised up the bill for job cuts at its money-losing Motorola Mobility mobile phone unit in the third quarter and warned of further restructuring that may result in "significant" additional charges. Google raised its estimates for severance-related charges 9 percent to $300 million from $275 million and warned it faced another $40 million in other costs in the quarter to quit facilities and 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 company said in a statement. Google bought Motorola last year for $12.5 billion, with the aim of bolstering its patent portfolio in the intellectual property fight its Android mobile system faces with rivals Apple Inc and Samsung Electronics Co Ltd. But the Internet search giant has found itself lumbered with a restructuring headache, saying in August it would cut 20 percent of the Motorola Mobility workforce as it moves to make more smartphones and fewer simple mobiles. "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," Google said. The New York Times has previously reported that Google planned to shrink Motorola's operations in Asia by exiting unprofitable markets and abandon low-end devices to focus on a few models. Last year's purchase of Motorola raised investor concerns at the time that the software firm was buying into a hardware business with much lower profit margins and in which it had little experience. Analysts were expecting Google to wind down many of Motorola's legacy businesses to fit its strategy. Google shares were marked up 0.3 percent at $764.85 in light trading before the bell on the Nasdaq on Thursday. (Reporting by Neha Alawadhi in Bangalore; Editing by Rodney Joyce) Tech Media Related Quotes and News Company Price Related News Tweet this Link this Share this Digg this Email Reprints   We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. 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