The manufacturer of BlackBerry devices, Research in Motion (RIM) has reported saying that it is going to slash about 5,000 jobs which is to restructure the plan. The company also made announcements regarding the delay of the unveiling of its latest phone platform named as the BlackBerry 10 which is delayed till the very 1st quarter of 2013. These slashes are part of the plans of the company to comprehend above the USD 1 billion in the savings of cost which brings expectation to be completed by the end of the 2013 financial year.
The Blackberry 10 smartphone was believed to be a dangerous issue for the existence of this stressed company. RIM, in a statement said that the addition of major features as well as the enhancement of the huge number of code into the OS is wastage of time. RIM has plans to unveil the BlackBerry 10 smartphones by the 1st quarter of the year 2013. The first phone with the BlackBerry 10 platform was to be unveiled this year but according to the announcements, it has been delayed. Now, it is scheduled to be unveiled months after the launch of the new iPhone. According to the RIM President and CEO, Thorsten Heins, the main aim of the company is to launch the BlackBerry 10 device successfully.
Heins said “RIM’s development teams are relentlessly focussed on ensuring the quality and reliability of the platform and I will not compromise the product by delivering it before it is ready. I am confident that the first BlackBerry 10 smartphones will provide a ground-breaking next generation smartphone user experience.” He added “The company expects to incur restructuring related charges of around USD 350 million by the end of fiscal 2013, primarily associated with the global workforce reduction.” For the Q1 of the financial 2013, the revenues stood at USD 2.8 billion which is about 33% less from the $4.2 billion of the previous quarter. The revenue is also 43% less in comparison to the $4.9 billion of the same quarter of the financial year, 2012.
In the course of the quarter, RIM made shipments of about 7.8 million BlackBerry smartphones as well as about 2,60,000 BlackBerry PlayBook tablet PCs. The company’s shares also had a rise to about 14% after the announcements of the delay of the BlackBerry 10. The company is a statement said “The company expects to report an operating loss in the second quarter of fiscal 2013, as RIM continues to invest in marketing programmes and continues to work through the transition to BlackBerry 10, as well as the company’s fixed costs being allocated over a lower volume of shipments.”