6/17/2011 12:19:00 PM
RIM to slash jobs in cost-cutting drive
BlackBerry manufacturer RIM is to slash jobs as part of a cost-cutting programme starting this quarter.
The manufacturer will focus on areas with the highest growth opportunities – such as accelerating new product introductions – as part of the changes taking place in Q2 of this year.
RIM also cut its full-year outlook, saying it had a ‘challenging’ start to its fiscal year. Revenue for the first quarter ended 28 May were down 12% on the previous quarter to $4.9bn
It shipped approximately 13.2 million BlackBerrys during the quarter, and also sold around 500,000 BlackBerry PlayBook tablets.
RIM reported Q1 profit of $695m, down from $769m a year ago.
The company said the slowdown was continuing in the second quarter. It added that delays in new product launches to the end of August will mean little improvement until the end of 2011.