BlackBerry maker Research In Motion said on June 20 they started laying off a number of employees. This is part of their restructuring plan aiming to save about $1 billion this year.
It was last month when the Waterloo, Ontario-based company stated there would be significant lay-offs this year. RIM said it has “reduced some positions as part of its program and may continue to do so as the company methodically works through a review of the business.”
Meanwhile, the company refused to provide number. However, they will offer an update on this matter on their quarterly financial reports on the following week.
As the famous BlackBerry company faces a major struggle in the business, they are preparing to launch their newest offering BlackBerry 10. This newest offering will be launched later this year, amid the growing preference of North Americans for iPhones and Android phones over the once iconic BlackBerrys.
Jefferies analyst Peter Misek expects the company’s move is related to the company’s older software and manufacturing platforms. He is also expecting RIM to lay-off about 6,000 employees. The analyst said the company’s revenue base will not cover the cost and that it needs to be flexible for the release of the BlackBerry 10 phones.