According to Cantech Letter sources, the quiet halls of Research in Motion offices will grow even quieter on August 13th.
That’s the day when up to three-thousand RIM employees -the amount remaining for the company’s previously announced cuts of five-thousand- will take place. RIM wants to complete the layoffs before the end of its second quarter, which ends August 31st, say sources close to the company.
Late in June, the BlackBerry-maker reported the worst quarter in its history. In its Q1 2013, RIM posted a net loss of (US) $518-million, or $.99 cents per share. Revenue was a scant $2.8-billion. Adding to the cloud hanging over the company was the announcement that its upcoming BlackBerry 10 operating system, generally regarded as RIM’s last shot at a revival, would be delayed until Q1 2013.
The move following Q1 mirrored the layoffs of two-thousand last summer, when the company posted a comparatively healthy $4.9-billion topline.
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According to the sources, jobs for those working on the company’s new Blackberry 10 operating system are generally safe, as are those who work in enterprise sales. The areas facing the deepest cuts are customer service, human resources, marketing, non-enterprise sales and RIM’s Global Repair Services.
The expected cuts will reduce RIM’s employee count to barely 10,000 around the world, down from 16,500 early this year, and halved from a high of nearly 20,000.
Shares of Research in Motion on the TSX closed Friday up 5.1% to $7.41.
Note: To the knowledge of the author, Research in Motion has not publicly confirmed these layoffs.
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