RIM’s Woes: BlackBerry-Maker Promises Job Cuts Soon

BlackBerry supplier Research in Motion has faced challenges this year and its about to get much worse for some of the employees.

In its earnings announcement Thursday, the Canadian company revealed plans to cut jobs beginning in its fiscal second quarter.

RIM said it planned to eliminate redundancies and reallocate resources in order to focus on high-growth areas and meet such strategic objectives as accelerating the introduction of new products. The company also announced plans to buy up to 5 percent of it outstanding common shares. The companys stock price has been declining precipitously.

Fiscal 2012 has gotten off to a challenging start,” RIM Co-CEO Jim Balsillie said. The slowdown we saw in the first quarter is continuing into Q2, and delays in new product introductions into the very late part of August is leading to a lower than expected outlook in the second quarter.”

In the first quarter of fiscal 2012, RIM reported net income of $695 million or $1.33 per share diluted, on revenues of $4.9 billion. Analysts had been expected a profit of $1.32 a share on revenues of $5.1 billion, according to Reuters. A year ago, RIM posted net income of $769 million, or $1.38 per share diluted, on revenues of 4.2 billion.

For the three months ending May 28, RIM shipped roughly 13.2 million BlackBerry handheld devices and approximately 500,000 BlackBerry PlayBook tablets.

In the second quarter of fiscal year 2012 (ending August 27), RIM expects revenues of $4.2 billion to $4.8 billion.  The company forecasts earnings per share diluted of $0.75 to $1.05, excluding any one-time charges. 

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