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/