Google has admitted it will incur costs of $300m as “severance-related charges” following its acquisition of Motorola Mobility.
Google revealed in August it would be slashing 20% of the Motorola workforce, as it planned to move away from the company’s more traditional feature phones to focus on smart devices.
Now, in a filing with the US Securities and Exchange Commission (SEC), Google has confessed how much it will cost the company and that there might be more job cuts on the horizon.
“Google expects to incur severance-related charges of approximately $300m, which will be recognised in the third quarter of 2012 and of which approximately $250 million is expected to be paid in cash,” read the filing.
“Other charges related to facility and market exits, primarily in cash, of approximately $90 million in 2012 and 2013, of which approximately $40 million is expected to be recognised in the third quarter of 2012 [will also be incurred].
“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 revealed it was buying Motorola Mobility in August of last year for $12.5bn. In September it brought its first handsets to market, since the acquisition, with the launch of three Razr smartphones.