The makers of BlackBerry, Research in Motion (RIM) is reportedly slashing jobs and streamlining its operations as it struggles to regain ground in the Smartphone market. The company’s first quarter revenue fell short of expectations and it reduced its outlook for future earnings for the second time this year.
Jim Balsillie, co-chief executive, stated that the fiscal year had “gotten off to a challenging start” and the slowdown the company experienced in the first quarter is expected to continue into the second quarter. The company is expecting revenues to decline further in the second quarter to between $4.2bn and $4.8bn. As a result of the unimpressive results, RIM will be obliged to cut costs including a headcount reduction.
The sale of RIM’s PlayBook tablet, which is a well-known rival to Apple’s best-selling iPad provided a surprise bright spot for the company. Even thought the PlayBook debuted early this year to dismal reviews and complaints that it was rushed out before it was ready, RIM was able to sell 500,000 tablets in the first quarter, well ahead of Wall Street estimates.