RIM expects to cut jobs
Posted Jun 17, 2011 01:00:20 AM.
This article is more than 5 years old.
Research In Motion has made an announcement of lower than expected revenues.
Earning about $4.9 billion in the first quarter of Fiscal 2012 instead of the $5.19 Billion that was projected. It’s also down from the previous quarters revenues of $5.6 Billion.
CO – CEO’s Jim Balsillie and Mike Lazaridis told investors in a conference call that they have never been more committed to their business, while citing slower than anticipated sales in the US and Latin America as well as a bulky organization after several recent acquisitions. Balsillie said some of the structures that were once crucial to RIM’s success no longer make sense, “a more efficient cost structure will allow us to be nimble in responding to new market opportunities and changes in the competitive environment. As a result we have made the decision to begin a cost management process that will include head-count reductions across the company and the re-allocation of resources to areas that offer the highest long-term growth opportunities”.
Lazaridis said “while I can’t promise that there wont be bumps in the road ahead, I can assure you, that Jim and I have never been more committed to the business and that our interests remain closely aligned with those of our shareholders”, after delivering a plan that sees the sliming down of a company ahead of the launch of the BlackBerry 7 smart phone and the expanded Playbook launch.
While Balsillie stated that, “the reduction of our head count is an incredibly difficult decision and Mike and I appreciate the impact of this on our employees, their families and the community” he assured investors that RIM’s future and growth will remain a priority of the company and that the head-count reduction will add impact to the ability of RIM to respond to the demands of the marketplace. “We do not intend to make significant cuts to areas or development projects that are crucial to RIM’s future direction and growth”.
The announcement seemed to have an immediate impact on NASDAQ after-hours trading with Research In Motion dropping 5.06 points, a net change of 14.32%.
