Motorola Mobility posts loss, plans to cut 800 jobs
Motorola Mobility Holdings Inc., the half of Motorola that Google Inc. plans to buy, is going to cut 800 jobs, the company said in a regulatory filing.
The company announced the layoffs, which were approved by Motorola on Oct. 24 and will take place before the end of the year, in its third-quarter filing with the Securities and Exchange Commission.
Motorola Mobility is the slice of the company that designs and builds consumer products, such as the Photon, the Droid Bionic and the upcoming Droid Razr smartphones. According to the filing, some of the employees losing their jobs were also involved in projects at the company’s other half, Motorola Solutions, which focuses on products for business customers.
In August, Google agreed to buy Motorola Mobility for $12.5 billion in a move that will not only land the tech giant a hardware company but also allow it to tap into the thousands of patents that Motorola owns.
Motorola Mobility shareholders will vote on the Google takeover deal Nov. 17. Google is also awaiting regulatory approval. The boards of both companies have approved the deal.
Motorola Mobility said in the filing that the sale was expected to go through by the end of this year or early in 2012.
The company had $3.3 billion in sales in the third quarter, up about 10.6% from the same period last year. It posted a loss of $32 million, an improvement of about 9.4% over its loss in the quarter last year.
The company said that since the beginning of the year it has sold nearly 800,000 Motorola Xoom tablets, its challenger to Apple’s iPad.
The iPad is far ahead of the Xoom — and all other tablets — in sales.
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