The company's revenues in the fourth quarter of 2012 were down 40 percent from the same period a year earlier, falling from $2.5 billion to $1.5 billion, Sun-Times media reported Friday.
Motorola Mobility lost $353 million October through December, Google said.
Besides the layoffs, Motorola intends to move 2,800 workers from its headquarters in Libertyville, Ill., to Chicago's Merchandise Mart, the newspaper said.
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