BlackBerry smartphone maker Research In Motion Limited (RIMM) constantly cut jobs, as a part of the action to the $1 billion operating cost cut plan.
RIMM spokesman Tenille Kennedy said in an e-mail that RIMM’s goal is to achieve efficient operations, meanwhile reduce operating costs in the current fiscal year. Job cut is also part of the plan.
RIM previously said it would save operating costs by reducing the production bases, and the company is reviewing the efficiency of the organizational structure. Electronics supplier Celestica announced this week that it will stop manufacturing BlackBerry phones, because RIMM is reducing the supply chains reasonably.
Analysts said that if RIM is going to lay off 30% of the staffs to reduce the expected costs, then the number of workers who will be fired will reach 2000 to 3000. RIMM stock price has declined more than 61% over the past 12 months and CEO Thorsten Heins is making efforts to restore the company’s reputation.
RIMM plans to release a series of BlackBerry operating system based mobile phones, with the hope to recover the market share which has been taken by Apple and Android devices.
The Wall Street Journal said that RIM is cutting jobs on a small-scale in recent weeks.
RIMM stock price closed down 3.86%, or $0.41, to report at $10.33 per share Wednesday, 69.20% off the 52 week high of $33.54 per share.