Motorola Plans To Make 800 Job Cuts Before Its Acquisition By Google

November 1, 2011 | By | Reply More

Not long ago we reported that Google was in process to acquire the handset maker, Motorola Mobility. Well, it seems like Motorola Mobility is taking the deal very seriously and a new report shows that Motorola Mobility has decided to shed eight hundred jobs due to the same reason. As you might remember that Google offered a stunning $12.5 billion to take over the Motorola Mobility. And now these layoffs will be made do to the acquisition of Google in near future. The report was today published by Bloomberg. And according to the report, the move of laying off people was first approved by the company on 24th October, as the same day company filed a regulatory document with the US Securities and Exchange Commission. The report also shows that with the help of these job cuts, Motorola Mobility will incur $31 million in related costs only in this quarter and other additional $27 million severance pay and a four million dollars of facilities costs will also be saved. According to a company spokesperson, Jennifer Weyrauch-Erickson:

Motorola Mobility continues to focus on improving its financial performance by taking actions to manage the company’s costs.

Last week, Motorola Mobility showed its quarter revenue statements and those documents show that company had $32 million in the September quarter losses and they had only sales of $3.3 billion by shipping 100,000 Xoom tablets and 4.8 million smartphones around the world. Motorola Mobility has also doubled down on Android, as of earlier this month they released their flagship device Droid Razr, a high end smartphone and after that last week they made an announcement that they are going to update their devices to latest Android version, Ice Cream Sandwich, six weeks after its official release to OEMs.

Google’s acquisition of Motorola Mobility is still to be cleared by US regulatory authorities and once that happens, Motorola Mobility will become Google’s in house smartphone design place. So, it means that with this acquisition we will be able to experience completely integrated devices both with Android software and services under the same roof.

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Category: Google, Motorola

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