Monday, October 31, 2011

Motorola to AXE 800 plus jobs ahead of Google Deal

Motorola Mobility (NYSE:MMI) said it will cut 800 jobs ahead of the closure of Google's (NASDAQ:GOOG) proposed $12.5 billion acquisition of Motorola, according to a regulatory filing.
According to a filing Motorola made late Friday with the Securities and Exchange Commission, the company will incur a charge of $31 million for the layoffs, made up of $27 million in severance costs and $4 million for closing down facilities. Motorola said the job cuts are global and that its mobile devices and set-top box businesses will both be affected by the job cuts, as will various corporate functions.
"Motorola Mobility continues to focus on improving its financial performance by taking actions to manage the company's costs," Motorola spokeswoman Jennifer Weyrauch-Erickson said in a statement to Bloomberg, adding that the cuts are unrelated to the proposed acquisition.
In the same filing, Motorola said it continues to expect the deal to close by late 2011 or early 2012, a target that is unchanged from when the companies announced the acquisition in August. In late September the Department of Justice asked both Google and Motorola for more information on the deal. Motorola shareholders will vote on the deal Nov. 17.
For the third quarter Motorola posted net revenues of $3.3 billion, up 11 percent from the third quarter of 2010. The company's net loss in the third quarter shrank slightly to $32 million, from $34 million in the third quarter of 2010. The company also reported a slight rise in its handset and smartphone shipments.


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