MCNBRIEFSMCNBRIEFS 10/07/2012 8:00 PM Eastern
Google May Make More Moto Cuts
MOUNTAIN VIEW, Calif. — Google expects higher layoff-related charges as it eliminates 4,000 jobs at Motorola Mobility, and the Internet giant said even deeper cutbacks could be in the offing.
In August, Google said it would lay off about 20% of Motorola Mobility’s workforce, eliminating about 4,000 jobs and closing a third of its 94 offices worldwide, in an effort to streamline operations.
Last week, Google said it now expects the layoffs at Motorola to result in severance-related charges of approximately $300 million, which will be recognized in the third quarter of 2012. The company also will incur other charges related to facility and market exits of approximately $90 million in 2012 and 2013. Previously Google said it expected layoff-related charges for Motorola of no more than $275 million.
“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 disclosed in an 8-K filing last week with the Securities and Exchange Commission.
In May, Google closed the $12.4-billion cash acquisition of Motorola Mobility, driven largely by Google’s desire to obtain the latter’s patents. It valued Motorola’s 17,000-plus patent portfolio at $5.5 billion, representing the largest component of the price tag.
As of the end of June, Motorola Mobility had 20,293 employees. Google previously said about one-third of the job cuts will be in the U.S. Google is aiming to sell the Motorola Home unit, and has enlisted Barclays to seek buyers for the cable-focused division, according to multiple industry sources.
— Todd Spangler
CTAM Names Case Study Finalists
NATIONAL HARBOR, Md. — The Cable & Telecommunications Association for Marketing announced the three finalists in its Case Study Competition, the winner of which will be announced at the CTAM Insights Conference in Orlando, Fla., from Oct. 14-16.
The finalists are Disney Media & Advertising Lab and ESPN: Aspect Ratio Eff ects; ESPN, WatchESPN: Taking on TV Everywhere; and TV Land: Power of Laughter. They will present their real-word business cases at the conference on Tuesday, Oct. 16, at 9 a.m.
Following the presentations, the Insights Conference co-chairs, Kathy Filosa, vice president, direct marketing, Cablevision Systems; Janet Gallent, senior vice president, strategic and primary research, NBCUniversal; and Steve Seidmon, president, Seidmon Associates, will provide commentary and questions. Insights attendees will then help decide the winner by text voting.
— Mike Farrell