English | دری

Blackberry maker RIM warns of loss and job cuts

in International Business

Blackberry maker RIM warns of loss and job cuts

The company behind the Blackberry smartphone has warned it will make a loss in its latest quarter and make “significant” job cuts.

Research In Motion (RIM) also said it was hiring JPMorgan and RBC Capital Markets to help with a “strategic review” of the business.

It has lost ground as its traditional business clients have switched to iPhones or Android phones.

RIM shares fell 10% in after-hours trading.

Some have speculated that the strategic review may lead to a sale of the firm.

“The on-going competitive environment is impacting our business in the form of lower volumes and highly competitive pricing dynamics in the marketplace, and we expect our first-quarter results to reflect this, and likely result in an operating loss for the quarter,” chief executive Thorsten Heins said.

“There will be significant spending reductions and headcount reductions in some areas throughout the remainder of the fiscal year,” he added.

‘High churn’

In the last financial year, RIM made a net profit of $1.2bn, down from $3.4bn in the previous year.

Mr Heins added: “Our global subscriber base continued to grow this quarter to approximately 78 million, driven primarily by growth in international markets, which is partially offset by high churn in the United States.”

Once heralded as one of the fastest-growing companies in the world, RIM has struggled to keep up with rivals in the smartphone market, such as Apple’s iPhone and handsets running on Google’s Android operating system.

It has also struggled to gain a foothold in the tablet market.

The launch of Blackberry 10, expected later this year, and a much-delayed new operating system, are expected to be crucial to its turnaround plan.

Source: BBC News



Related Articles

Asian Infrastructure Investment Bank, SAARC Development Fund to co-fund projects in SAARC Region

A delegation of AIIB led by Sir Danny Alexander, Vice President & Corporate Secretary visited the SAARC Development Fund Secretariat

Boeing Expects a Stronger Airline Traffic

Boeing forecasts USD 4.5 trillion of new planes will be bought over the next 20 years, with airline traffic growing

Chinese company pulls out of the Iran-Pak gas pipeline project

A Chinese company, which had offered USD 500mn to fund the Iran-Pakistan gas pipeline, has backed out, leaving Pakistan to

No comments

Write a comment
No Comments Yet! You can be first to comment this post!

Write a Comment

Your e-mail address will not be published.
Required fields are marked*

Time limit is exhausted. Please reload the CAPTCHA.