Motorola Mobility Slashes 800 Jobs at a Cost of $31 Million

In a regulatory filing with US Securities and Exchange Commission, Motorola Mobility Holdings Inc., the mobile phone maker, that agreed to be bought by Google Inc (NASDAQ: GOOG) said that it is slashing 800 jobs at a cost of of $31 million out of which $27 million will go towards severance and $4 million for closing facilities. Libertyville, Illinois-based Motorola Mobility said that these costs will be booked this quarter and that the moves have been approved on Oct. 24.

On Aug. 15, a deal was announced for the takeover of Motorola Mobility by Mountain View, California-based Google Inc. for $12.5 billion and Motorola Mobility is preparing to complete its acquisition by reining in costs.

Jennifer Weyrauch-Erickson, a spokeswoman for Motorola Mobility, said in a statement that “Motorola Mobility continues to focus on improving its financial performance by taking actions to manage the company’s costs,” and added that the efforts are unrelated to the proposed acquisition.

The financial results announced by Motorola Mobility on Oct. 27 indicate that sales rose 11 percent to $3.26 billion beating analysts’ estimates. However, the company is still losing money, though its loss narrowed to $32 million or 11 cents a share, from a loss of $34 million a year earlier. Google is acquiring the company mainly to gain access to mobile patents and move into the hardware business.

Source : http://www.financeenquiry.com/motorola-mobility-slashes-800-jobs-at-a-cost-of-31-million/