Motorola are set to cut down 800 jobs after its poor summer results, The pretax costs include $27 million in severance and $4 million for closing facilities and will be recorded this quarter. Motorola Mobility is reining in costs as it prepares to complete its acquisition by California-based Google Inc. The $12.5 billion deal was announced Aug. 15.“Motorola Mobility continues to focus on improving its financial performance by taking actions to manage the company’s costs,” Jennifer Weyrauch-Erickson, a spokeswoman for Motorola Mobility, said in a statement. Cutting down 800 jobs was expected to cost a total of $31 million before it would produce savings. Its also said that Motorola Xoom shipments fell to just 100,000 units, less than half the tablets it managed in its truncated launch quarter. Oct. 27, Motorola Mobility announced financial results that beat analyst estimates as sales climbed 11 percent to $3.26 billion. 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.
Some of Highlights on Motorola’s Q3:
- Sales of $2.1 billion, up 10 percent from third-quarter 2010
- Government sales of $1.4 billion, up 9 percent from third-quarter 2010
- Enterprise sales of $726 million, up 13 percent from third-quarter 2010
- Cash flow from continuing operations during the quarter of $477 million and ended the quarter with total cash* of $6.3 billion
- Repurchased $744 million of shares in the quarter