News coming out of RIM hasn't been good for quite some time, and it only seems to be getting worse. According to Business Insider, the BlackBerry maker announced today that it will slash 5,000 jobs as part of its larger restructuring efforts. The news of layoffs follows reports that its stock price fell well below projected estimates, loosing $.37 per share. Analysts initially projected that shares would fall by just $0.07 per share.
Adding insult to injury, RIM also announced that its highly anticipated BlackBerry 10 operating system will be delayed until the first quarter of 2013. BB10 is seen by many to be RIM's last true ace in the hole, but has yet to be seen in public beyond a brief on-stage demonstration at the company's BlackBerry World conference in May.
CEO Thorsten Heins blamed the holdup on development delays, adding, "I will not deliver a product to market that is not ready to meet the needs of our customers."
Overall RIM reportedly moved some 7.8 million BlackBerry devices, falling well short of the 8.74 million devices analysts expected the company was expected to ship. Surprisingly, RIM managed to beat expectations with its PlayBook tablet sales, shipping 260,000 units.
Heins also painted a bleak outlook for the coming months for RIM, saying he expects the company to swallow and operating loss in the second quarter. "We are expecting the next several quarters to be very challenging," he said.
The company was hurt as many customers left premium unlimited plans, opting for less expensive pre-paid plans, a switch that strongly effected revenue.
Despite the bleak annoucement, RIM remains confident in BlackBerry 10's performance and user adoption, claiming that they're not just building the next smartphone but an entirely new computing platform. "We're not trying to be one of many, we're trying to be different," said Heins. "Customers who buy a BlackBerry know why they're buying a BlackBerry."
via: Business Insider