The job cuts affect its mobile-phone production capacity, and comes on top of the 1,600 posts already shed in the UK over the last 18 months.
The company is engaged in a three-month research period in order to decide which jobs will be lost. It reduces the once 3,000 strong workforce to just 1,000, the report claims.
Motorola returned a net loss of $2.32 billion in its last quarter, the largest in the company's history. Revenues declined 11 per cent year on year to $6.74 billion. When the company announced its results it declared it would cut 7,000 jobs worldwide as part of a restructuring programme.
For 2003, Motorola expects earnings of $29 billion – barring unforeseen political or economic disruptions that would force it to take on additional special charges.