The mobile giant said that it may make a loss in the first quarter of this year, and will shed 2,500 US jobs over the next six months. The management team has also been reshuffled.
Motorola president Robert Growney called the performance of its wireless handset business "unacceptable", and reported a big slowdown in orders across its business lines.
However he claimed that the weakness is the result of "current industry-wide conditions and not a loss in [Motorola's] market share".
The forecast follows a number of profit warnings from US technology firms, signalling a slowdown which Growney said is "bleeding very quickly into Europe" .
Motorola slashes jobs after handset slump
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