RIM to cut 5,000 jobs worldwide, delays Blackberry 10 until 2013, after a $518 million loss in Q1 2013 fiscal year

By on Jun 29, 2012 in Business, North America, Smartphone, Technology Comments

Blackberry maker Research in Motion (RIM) announced on Thursday, June 28, 2012 that the launch of Blackberry 10 smartphone, which was earlier set in late of this year, was re-scheduled in the first quarter (Q1) of 2013 calendar year; and that the company will also cut around 5,000 jobs worldwide.

RIM CEO Thorsten Heins showing a Blackberry 10
during the BlackBerry World 2012 event in May 2012

Image Credit: BlackBerry YouTube video

As reported by RIM on its official website via a press release in pdf form that day, its Q1 2013 fiscal year financial results showed that they had a GGAP net loss of $518 million or 0.99 per share diluted, or an adjusted net loss of $192 million per share diluted.

RIM noted that the company had a cash flow from operations have reached to $710 million at the end of Q1 2013 fiscal year but brought in $2.8 billion in revenue during the same period, which is down 33 percent from $4.2 billion in the previous quarter (Q4 2012), with the job cuts being expected to save around $1 billion.

Meanwhile, the Canadian telecommunication and wireless device company added that shipments of Blackberry smartphones were 7.8 million and shipments of Blackberry Playbook tablets were around 260,000 units, with the Blackberry App World notably continuing to grow with over 89,000 apps available.

“Our first quarter results reflect the market challenges I have outlined since my appointment as CEO at the end of January. I am not satisfied with these results and continue to work aggressively with all areas of the organization and the Board to implement meaningful changes to address the challenges.” RIM CEO Thorsten Heins was quoted in the press release.

“Our top priority going forward is the successful launch of our first Blackberry 10 device, which we now anticipate will occur in the first quarter of calendar 2013. In parallel with the roll out of Blackberry 10, we are aggressively working with our advisers on our strategic review and are actively evaluating ways to better leverage our assets and build on our strengths.” Heins added, who has been the RIM CEO since January 22 of this year.

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