Motorola is to ditch a further 2,000 employees, this time in its Global Telecom Solutions Sector (GTSS) division.

Motorola – maker of G3 and G4 processors for Macs – has also warned that third-quarter sales will be flat compared to the second quarter – instead of up 5 per cent as the company had expected.

Motorola expects to report losses of $0.05 to $0.08 per share in its third quarter. The current consensus estimate for the quarter from analysts polled by Thomson Financial/First Call is a loss of $0.05 per share, including pro forma adjustments.

Motorola has announced 32,000 job cuts since December 2000, either from outsourcing production to electronics manufacturers like Celestica or outright staff reductions.

The company's stock fell more than 14 per cent to $14 near the end of trading. Motorola executives recently said that it could sell off its microprocessor division, should fortunes not improve.

Motorola's GTSS division makes wireless infrastructure products. The company is blaming the job losses on service providers delaying capital expenditures, so slowing growth in the infrastructure market. The job cuts will be complete by the end of the year, the company said.