Google cutting 4,000 at Motorola unit

Associated Press Published: August 13, 2012

MOUNTAIN VIEW, Calif. (AP) — Google is cutting about 4,000 jobs at its Motorola Mobility wireless phone business and will close or consolidate about one-third of Motorola's 90 locations.

The reductions represent about 20 percent of Motorola Mobility's 20,000 employees. The company said Monday that Motorola Mobility, based in Libertyville, Ill., has lost money in 14 of the past 16 quarters. The changes are intended to make the unit profitable.

Along with the job reduction, Google will shift Motorola Mobility's emphasis from simple wireless phones to more profitable devices.

The restructuring will cost Google about $275 million in severance costs.

Google Inc. completed its purchase of Motorola Mobility in May, seeking access to its portfolio of more than 17,000 patents.

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