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Google to cut 4000 jobs at Motorola

Motorola Mobility will cut approximately 4,000 jobs as well as close about one-third of its production facilities and streamline its mobile lineup, the firm confirmed Monday.

The reductions represent about 20 percent of Motorola Mobility’s 20,000 employees, and 7 percent of Google’s overall work force. Two-third of the job cuts will take place outside of the U.S., Google said.

The job eliminations come three months after Google bought the once-dominant U.S. cellphone maker for $12.5 billion, chiefly with a view to using its large patent portfolio to bolster its legal defenses.

Motorola will also close or consolidate about one-third of its 90 facilities and “simplify” its lineup of mobile products in order to focus on “more innovative and profitable devices” rather than feature phones. Severance payments will cost Google about $275 million, which will largely be recognized in the current quarter. The company also expects to book an unspecified amount in restructuring charges, mostly in the quarter.