Motorola Cutting 800 Jobs As Smartphone Group Still Seeing Red

Around 800 workers at Motorola (NYSE: MMI) won’t ever get to experience life as a Google (NSDQ: GOOG) employee, unless they join the search giant in the more traditional fashion. As the months tick away following Google’s announcement that it intended to purchase the handset maker, Motorola’s profits are still weak and now 800 people will lose their jobs in a cost-cutting decision.

Bloomberg spotted a filing with the Securities and Exchange Commission Friday outlining the layoff plan, which will save Motorola money over the long haul but also wind up costing it around $31 million in severance packages and closing costs, according to the report. Last week Motorola reported that it earned $35 million once some one-time charges and special items are excluded, but its smartphone group, which is growing in terms of shipments and revenue, is operating at a loss.

The cut represents a little less than 5 percent of Motorola’s 17,000 employees and it will affect both Motorola’s Mobile Devices group and its Home group, the latter of which accounted for all of the company’s profit last quarter. Google still maintains that it will operate Motorola as a standalone division should it be allowed by federal regulators to acquire the company, but further job cuts could accompany the close of that deal.