It has been reported that Motorola Mobility is cutting down on as many as 800 jobs in the company in attempts to control its expenses after suffering a loss again during the third quarter and in preparations of its impending acquisition by Google. The company has expressed expectations that it will have to suffer $31 million in costs which are concerned with severance packages and the closing of the facilities before it can begin to save from the workforce cuts that have been planned.
The mobile manufacturer based in Libertyville, USA stated last week its plans of terminating the employment a portion of its workforce. The budget of the company directs it to cut down on its costs even as it registered an increase of 9% in the sales of its smartphones.
Motorola Mobility revealed that it had suffered a loss of $32 million in the third quarter which includes expenses worth $18 million which are related to its acquisition by Google. The deal is yet to be completed and is currently awaiting the approval of the Department of Justice (DoJ) and is up for voting by the shareholders the coming month.
It is expected that the deal, which is worth $12.5 billion, will be closed by early next year. It has been said that the motive behind Google’s decision to buy the smartphone manufacturer is to bolster its library of mobile related patents and also to move into the mobile hardware sector. The plan is expected to provide the search giant with an even bigger edge for its popular mobile platform, Android, which runs on some of the most popular smartphones in the global market.
Motorola underwent a transition in the mobile market a couple of years ago after it started focusing entirely on models based on the Android OS and even went on to dominate that part of the market initially. However, the manufacturer eventually started struggling against the increasing competition from the other phone manufacturers such as Samsung and HTC after they released their own versions of Android smartphones. The steps taken by Motorola to cut its costs and decrease operations emulate the efforts by other mobile companies for decreasing costs with extensive layoffs during this year. RIM, too, reduced 2,000 jobs this summer for recovering from its losses.
