By Olga Kharif - Oct 29, 2011 6:04 AM GMT+0700
Motorola Mobility Holdings Inc., the mobile-phone maker that agreed to be bought by Google Inc. (GOOG), expects $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 exiting 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 close the planned acquisition by Mountain View, California-based Google. 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.
To contact the reporter on this story: Olga Kharif in Portland at okharif@bloomberg.net
To contact the editor responsible for this story: Tom Giles at tgiles5@bloomberg.net
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