It looks like Google didn’t crunch all their numbers when the first estimated that $275 million would be the cost of downsizing Motorola Mobility. Google bought Motorola for $12.5 billion, and it plans to spend an additional $340 million to pay for closures of markets and factories as well as the severance packages for the 20% of Motorola’s workforce that is to be laid off. That’s an extra $65 million on top of the $275 million they originally estimated. That’s a big chunk of change, my friends. All of this is part of the plan to move Motorola away from low-end phones and focus on a select few higher-end models.
Google had this to say in a statement they released; “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.”
This sounds like we may get an even higher number later on the future, but I would worry about it too much. We will know more about Google’s financial state soon enough as they are set to report the Q3 earnings later this month. That will be a good gauge on how this news will set with Google’s wallet.