Motorola Restructuring Proves to be More Complex Than Anticipated
October 29, 2012
The Inquirer recently published a piece that leads us to believe Motorola is a stickier wicket than Google predicted, called “Google Revises Cost of Motorola Mobility Restructuring.”
According to the article, after Google’s initial acquisition of Motorola, the restructuring has proved to be more costly and difficult than initially anticipated. One example of this is the fact that the search giant planned to cut Motorola’s workforce by 20 percent. However, after examining figures for severance charges, the number has been changed to 9 percent.
The article states:
“Motorola was bought for its considerable patent portfolio, with Google hoping that the 16,000 or so patents will help it fend off potential patent lawsuits by other firms like Apple and Microsoft. However Google bought not only 16,000 patents but also a company that was far from being the mobile phone market leader, with financials to match its lacklustre products.
Google said in a statement to Reuters, ‘Motorola has continued to refine its planned restructuring actions and now expects to broaden those actions to include additional geographic regions outside of the US.’”
We are still unsure of Google’s true motivations for buying Motorola. Whether it was patent related or hardware, Google’s next Nexus design should bring some clarity to the issue.
Jasmine Ashton, October 29, 2012