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RIMs Stock Rebounds on Job Cuts, Takeover Speculation

Shares of Research in Motion on Tuesday climbed about 10 percent amid reports that the BlackBerry maker has begun cutting jobs and could be acquired.

RIMs stock price plummeted following the companys earnings announcement last week in which it revealed that it was continuing to face challenges.

The price of the stock reportedly reached a five-year low and RIMs market value is only a fraction of what it was three years ago, as pointed out by The Wall Street Journal in a recent article asking whether now was the time for a RIM takeover.

Amid such reports, coupled with news that RIM has begun to lay off employees in Canada, the stock price has rebounded somewhat.

Last week, Waterloo, Ontario, Canada-based RIM revealed that a slowdown in its business is seeping into its second fiscal quarter, thanks at least in part to the delay of new products. The company said it would reduce its workforce but didn’t specify the number of layoffs.

RIM has been losing ground in the smartphone market to the likes of Apple and Android, and some analysts believe the company will continue to endure hard times without significant changes.

The companys co-chief executives last week sought to allay concerns about its future during a conference call with financial analysts, but analysts are putting much less faith these days in such assurances.


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