DailyTech - Motorola Mobility Expects to Pay $31 Million as a Result of 800 Job Cuts

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Gadgets Motorola Mobility Expects to Pay $31 Million as a Result of 800 Job Cuts
Virginia Lee (Blog) - October 31, 2011 10:29 AM

11 comment(s) - last by wallijonn.. on Nov 1 at 1:02 PM

(Source: funwidmasti.com)

The pretax costs are $27 million in severance and $4 million for closing facilities

Back in August of this year, Google announced that it had acquired Motorola Mobility, an American company that makes devices such as Droid smartphones and the 10.1" Xoom tablet, for $12.5 billion. Now, Motorola Mobility expects to pay $31 million in costs due to job cuts as it prepares for the Google acquisition.

The acquisition looks great for Google. This move allows the tech giant to get its hands on over 17,000 patents to protect Android, and also provides a path into the hardware business.

Just last week, all was looking well for Motorola Mobility as well as it announced favorable financial results that beat analysts' predictions. Motorola Mobility reported an 11 percent increase in sales to $3.26 billion, and managed to narrow its loss to $32 million from $34 million one year before.

Now, Motorola Mobility has announced expects to pay $31 million to cut 800 jobs. The pretax costs are $27 million in severance and $4 million for closing facilities.

These costs were reported in a regulatory filing with the U.S. Securities and Exchange Commission. According to Motorola Mobility, the moves were approved October 24, and the costs will be recorded this quarter.

Source: Business Week