RIM job cuts hit stock price

By Posted 30 May 2012, 10:04

When Research In Motion were at their height we saw a brand setting the bar with mobile access to email, slick BlackBerry phones, and also some really useful apps for business. In 2012 things have changed in the apps business dramatically and it looks like a two leg race between Apple’s iOS and Android. This has obviously caused problems for RIM, which we’re hearing will cut 40 percent of jobs in the coming months and this has directly hit the RIM stock price.

The direction of RIM’s (NASDAQ: RIMM) business has not been helped by a growing number of executives leaving, and one of the latest is Karima Bawa, the companies Chief Legal Officer. It’s also obvious that the new direction RIM is taking will not be for everyone, and their plans for the future will include some employees being forced to leave and others voluntary. This article explains that the plans set by RIM include cutting jobs from 16,500 to around 10,000.

Yesterday we were made aware of more plans being put in place by RIM, which are aimed at increasing business, profit, and having the right amount of people needed for the job. RIM has hired bankers to take a detailed look at their business, and this review would be needed considering they’re about to report a shocking loss in the first quarter. According to this article RIM’s share price has fallen more than 75% over the last year, and the lows are the highest seen in 8 years.

Following the warning of a loss RIM’s share price took a massive drop in after hours trading, and analysis can be seen here with real-time charts, although it’s worth pointing out that the price climbed again in the hours following this drop.

Do you own a BlackBerry smartphone, and if so are you thinking of moving to another brand or sticking with BlackBerry?

  • Rimjob

    Rim job….haha

  • Angel

    Author’s last name in partnership with title=winning!