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Google Cautions More Cuts at Motorola On the Way

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Oct 4, 2012, 7:13 AM by Eric M. Zeman

Google today warned investors that it may make further cuts at Motorola, which could result in costly restructuring charges. Google has already announced plans to cut a significant amount of Motorola's work force, reduce the number of offices/locations, and exit the entry-level smartphone business. These changes will result in about $340 million in charges during the third quarter. However, Motorola indicated that more reductions may be necessary. "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," said the company. Google didn't provide specific details about what cuts might be made. Google finalized its acquisition of Motorola earlier this year.

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