Oct. 28 (Bloomberg) -- Motorola Mobility Holdings Inc., the
mobile-phone maker that agreed to be bought by Google Inc.,
expects to incur $31 million in costs as it cuts 800 jobs,
according to a regulatory filing.
The pretax costs include $27 million in severance and $4
million for closing facilities and will be recorded this
quarter, Libertyville, Illinois-based Motorola Mobility said
yesterday in a regulatory filing with the U.S. Securities and
Exchange Commission. The moves were approved Oct. 24, the
company said.
Motorola Mobility is reining in costs as it prepares to
complete its acquisition by Mountain View, 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. She said the efforts are
unrelated to the proposed acquisition.
On 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.
Google is buying Motorola Mobility to gain access to mobile
patents and move into the hardware business. Chief Executive
Officer Larry Page said the company would use Motorola
Mobility's more than 17,000 patents to protect Android
supporters in licensing and legal disputes with rivals such as
Apple Inc. and Microsoft Corp.
Motorola Mobility shareholders will vote on the acquisition
Nov. 17.
To contact the editor responsible for this story:
Tom Giles at
tgiles5@bloomberg.net