Motorola was bleeding through the ears when Google decided to lap up Motorola Mobility for $12.5 bn. Now, a few months after the deal was okayed by the FTC, Motorola Mobility has decided to cut its wings by a few inches as it prepares to fit into Google’s shed as reported by Bloomberg.
Motorola is reportedly going to cut back on 800 jobs and close some locations which is going to cost them some $27 million in severance packages and an additional $4 million for closing facilities. Motorola Mobility is looking to improve its financial performance by curtailing their costs at the same time.
Though, it must be added that sales at Motorola have significantly improved by a margin of 11% to $3.26 billion since Motorola Mobility’s acquisition by the Mountain View, California based Google Inc. was inked on 15th August. Motorola’s board is yet to vote on the acquisition which is tentatively scheduled to take place on the 17th of this month.
Their losses have also marginally decreased from $56 million last quarter to $32 million in this quarter. Motorola would like to hit the green soon with promising line of upcoming smartphone releases like the Droid Razr which released on 27th October. Questions are still raised if Google would help Motorola rollout Android updates faster … specially while keeping the company at arm’s length.
