Motorola Mobility is cutting 800 jobs in order to make the company leaner and more efficient for the upcoming acquisition by Google, according to Bloomberg. This job-cutting will initially cost the company $27 million in severance and $4 million for facility closures, but is necessary in the long run to reign in future costs and maximize efficiency for the company.
Interestingly, Jennifer Weyrauch-Erickson, a spokeswoman for Motorola Mobility, indicated that the efforts are unrelated to the proposed acquisition. She also said, “Motorola Mobility continues to focus on improving its financial performance by taking actions to manage the company’s costs.”
Motorola posted increased sales and beat analysts predictions last quarter, but has still hemorrhaged $32 Million dollars, which was an improvement from the previous quarter. As reported previously, Google is buying Motorola in order to gain access to their technology patents, so that they can better defend Android manufacturers against patent infringement lawsuits. The Motorola shareholders board will have a final vote on the acquisition on November 17th of this year.