| shenagxthy | Date: Monday, 17 Jun 2013, 06:35:35 | Message # 1 |
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Employees based in North America will begin to receive their notices this week, while those in most other countries will be told at a later date, the company said. market.
锘?00 jobs in increasingly competitive landscape
"If they want to be a topthree or topfive smartphone player, then they have to much more aggressively spend money in the consumer market," said analyst Alkesh Shah of Evercore Partners.
The BlackBerry maker provided the details on Monday, about a month after announcing it would reduce its workforce to increase profit after it had lower BlackBerry smartphone sales in recent financial quarter.
RIM said it expects to provide more information on the latest round of layoffs when the company reports fiscal secondquarter results Sept. 15.
RIM could do a better job telling consumers its PlayBook, expected in the future to run Android software applications, will not be exposed to any malware from using these apps, Shah said.
Otherwise, RIM could make more cuts and only focus on providing highend smartphones and tablets to businesses and governments, he said.
"But they need to pick one of those two strategies and lay that out for investors."
Northern Securities technology analyst Sameet Kanade said he expects a total of about 3,000 job cuts, noting that RIM has increased its total number of employees through a series of acquisitions in recent years.
RIM already laid off an estimated 200 employees in Waterloo in late June, though the company declined to confirm the number.
RIM (TSX:RIM), based in Waterloo, Ont., currently has about 19,000 employees across its operations.
"The workforce reduction is believed to be a prudent and necessary step for the longterm success of the company," RIM said in a statement before stock markets opened for the week.
"It follows an extended period of rapid growth within the company whereby the workforce had nearly quadrupled in the last five years alone."
In afternoon trading on the Toronto Stock Exchange, RIM's shares were down $1.28, or 4.8 per cent, at $25.19.
There aren't enough reasons for consumers to buy a BlackBerry smartphone or tablet over Apple or Android products, he said, suggesting RIM could promote its security feature, valued by business users, to a consumer audience.
Its PlayBook tablet, which met expectations of selling 500,000 in the recent quarter, has received lukewarm reviews compared with Apple's iPad.
Research In Motion has said it will release a new generation of BlackBerrys next year with the same operating system as its PlayBook tablet, making its smartphones more like mobile computers.
Research In Motion will cut 2,000 jobs, or about 11 per cent of its global workforce, this year to reduce costs in the competitive smartphone and tablet markets, in which consumers are increasingly turning to Apple and Android products.
"They have to create a differentiated consumer message," Shah said from New York.
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