industries

RIM Stock Plunges Almost 20% on News of Cuts, Delay

The BlackBerry maker’s announcement of another 5,000 job cuts and further delays for its BlackBerry 10 platform may be the final nail in RIM’s coffin. Anyone reading almost any business publication for the last year is aware of RIM’s mounting financial woes. But in one fell swoop this week, the struggling company’s fate has gone from grim to abysmal.  

By Lindsey Peacock /

RIM Waterloo campus | BCBusiness
Waterloo, Ont.-based Research In Motion took a nosedive in Friday morning trading after cutting 5,000 more jobs and delaying its BB10 release.

The BlackBerry maker’s announcement of another 5,000 job cuts and further delays for its BlackBerry 10 platform may be the final nail in RIM’s coffin.

Anyone reading almost any business publication for the last year is aware of RIM’s mounting financial woes. But in one fell swoop this week, the struggling company’s fate has gone from grim to abysmal.
 
RIM announced Thursday it would axe another 5,000 employees in an attempt to cut $1 billion from its overhead and get its financials back on track. This is on top of thousands of previously announced job cuts.
 
The BlackBerry maker added insult to injury by further announcing the crux of its hoped-for recovery, its new BlackBerry 10 platform, would be delayed until early next year. The company had high hopes its much-lauded BB10 platform would be able to boost its market share and move the company back into the black. The launch was originally scheduled for this fall, so BB10 likely won’t be able to save RIM’s sinking revenues.
 
As a result, the company’s stock took a massive beating during Friday morning trading, dropping in value by almost 20 per cent.
 
All the company’s troubles have amounted to a slow-motion train wreck — we watch with horror and disbelief as the crash happens before our eyes. Unfortunately, it seems the end is near for the Canadian tech firm.