Categories: Business

Blackberry maker warns of loss in Q1 and announces job cuts

Research In Motion (RIM), the company behind the Blackberry smartphone, has warned it will make a loss in its latest quarter and make “significant” job cuts.

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.

Research In Motion (RIM), the company behind the Blackberry smartphone, has warned it will make a loss in its latest quarter and make "significant" job cuts

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.

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

Thorsten 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.

 

Clyde K. Valle

Clyde is a business graduate interested in writing about latest news in politics and business. He enjoys writing and is about to publish his first book. He’s a pet lover and likes to spend time with family. When the time allows he likes to go fishing waiting for the muse to come.

Recent Posts

Spain: At Least 158 Killed In The Country’s Worst Flooding Disaster

At least 158 people have died in Spain's worst flooding disaster in generations. On October…

2 days ago

Russia Fines Google $20,000,000,000,000,000,000,000,000,000,000,000, Surpassing Global GDP

Google has been fined two undecillion (a two followed by 36 zeroes) roubles by a…

2 days ago

Financing Your Home Remodel: 7 Tips for Success

Embarking on a home remodel is an exciting journey, promising enhanced comfort, increased property value,…

2 weeks ago

Donald Trump Serves Up McDonald’s Fries While Kamala Harris Celebrates 60th Birthday with Church Choir

The US presidential candidates continued to campaign across key swing states on October 20. Footage…

2 weeks ago

America PAC: Elon Musk Promises to Award $1M Each Day to Swing States Voters

Elon Musk has said he will give away $1 million a day to a registered…

2 weeks ago

Canada Expels 6 Indian Diplomats Amid Khalistan Row

India and Canada have decided to expel their top envoys along with other diplomats as…

3 weeks ago