RIM cuts jobs in $1B cost-cutting effort
RIM does not detail the number of employees cut, or where the jobs were cut
IDG News Service - Research In Motion has started cutting jobs as it tries to achieve its stated goal of slashing $1 billion in costs by the end of fiscal 2013, the company said on Wednesday.
The company did not specify the number of jobs cut or where headcount was reduced. The job cuts were in line with a May 29 announcement, when the company said that it would look to reduce headcount and spending, said a RIM spokesman in email.
RIM has committed to achieving significant efficiencies and operating cost reductions over the course of this fiscal year, the spokesman said. RIM reports first-quarter 2013 earnings on June 28, when it will provide an update on its business.
RIM makes BlackBerry devices and has said competitive pressures are hurting its business, with devices running Apple's iOS and Google's Android OS gaining market share. About 9.7 million BlackBerry phones shipped in the first quarter this year for a market share of 6.4 percent, a decline from the 13.8 million units that shipped for a 13.6 percent market share in the first quarter of 2011, according to IDC.
The company is also hurting financially. In its May 29 announcement, RIM warned that it expects an operating loss for the first fiscal quarter of 2013, which ended on June 2. The company also said it had hired two investment banks -- J.P. Morgan and RBC Capital Markets -- to review the company's "various financial strategies, including opportunities to leverage the BlackBerry platform through partnerships, licensing opportunities and strategic business model alternatives."
The company in March reported a net loss of $125 million in the fourth quarter of 2012, and a 25 percent year-over-year decline in revenue, to $4.2 billion.
- The New IT Explore enhanced productivity for IT staff, and seamless integration across IT operation management systems. Download now.
- Troubleshooting Common Issues in VoIP Learn more about Voice over Internet Protocol (VoIP), including common VoIP metrics used, best practices in VoIP management and tips and tricks for...
- IDG Research Survey: Are you Paying Too Much for Your NMS? Feel like you're paying too much for network monitoring? You're not alone. This survey brief summarizes findings from research recently fielded by IDG...
- 2013 Network Management Software (NMS) Buyers Guide This white paper contains an independent comparison study of six different network management solutions and provides guidance on how you can choose the...
- Bringing software licenses into compliance A hospital group received a software license audit, so they called in CDW to help define and manage their software licensing status.
- Tips to Simplify Database Administration and Development Make your job easier while getting the most from the leading productivity tool for database professionals. Learn tips from Dell Software's Oracle® ACE,... All IT Careers White Papers | Webcasts
Our 28th annual survey results show which IT skills are in high demand and which are cooling off. Also, see how your salary stacks up to peers' with our Smart Salary Tool.