BlackBerry maker RIM to layoff a third of its staff
UPDATE / Friday, June 29: In an earnings call this morning NZ time, BlackBerry maker RIM has confirmed mass layoffs – 5000 of 16,500 staff will be made redundant.
The company also said its BlackBerry 10 software, which will run a new, iPhone-style touchscreen BlackBerry handset, has been delayed until next year.
RIM said it lost $US518 million in its June quarter, compared to a $US695 million profit in the year-ago quarter.
The loss was worse than analysts had expected.
Revenue fell 43% to $US2.8 billion.
RIM's shares, which are dual-listed on the Toronto and Nasdaq exchanges, dropped 18% to $US7.74 in extended Nasdaq trading.
The stock [NAS:RIMM] has already crashed from its historic high of above $US140 amid competition from Apple's iPhone and Google Android-based smartphones.
There was no word on a company break-up, mooted by some commentators earlier this week (see below).
BlackBerry maker RIM plots break-up
Tuesday, June 26: BlackBerry maker Research in Motion (RIM) is considering spinning off its hardware business, according to a report by the UK's Sunday Times.
The troubled smartphone maker is said to have hired advisors to access if it should split in two – with separate software and handset companies formed.
The hardware side accounts for 79% of RIM's revenue.
The New York Times quoted "people close to RIM" saying the idea was "a silly fantasy".
However, a company spokesman did concede “RIM has hired advisers to help the company examine ways to leverage the BlackBerry platform through partnerships, licensing opportunities and strategic business model alternatives".
RIM jobs to go
RIM has also said a round of layoffs is coming. The Canadian-based company has yet to confirm numbers, but media speculation has the cuts at between 2000 and 6000 of a total 16,500.
Later this year, RIM will release the latest version of its operating system software, BlackBerry 10, and a new touchscreen phone designed to win back customers lost to Apple iPhone and Google Android.
RIM shares, which traded over $C140 at the company height, closed at $C9.36 on Friday.