Suffering from reduced profit margins and greater competition, BlackBerry’s creator, Research In Motion Ltd, declared in the previous month that it is firing 2,000 employees as part of its cost reduction scheme, along with moving around a few of its senior executives.
These job cuts are resulting in nearly a 10 percent fall in Research In Motion Ltd’s labor force. The company has announced that it will inform the employees, who are being laid off, during this week. More details will be provided about the forced resignations when the company releases its second-quarter results of the fiscal year on Sept 15.
The company’s U.S. shares have reduced by 4.4 percent, or $1.24, to $26.67. The shares reached their lowest on Wednesday, since the past five years, at $25.60.
Though BlackBerry has been on the top of the list in the corporate Smartphone market, their status in the consumer market was fleeting. Although, RIM’s sales are on the rise in several countries abroad, its U.S. client base has begun to dwindle with the introduction of large touch-screen phones like Apple’s iPhone and Google’s Android operating system.
The release of its PlayBook Tablet computer also bore little fruit for the company, with very few businesses in the phone industry showing any interest towards it.
It was recently reported by Apple Inc. that it had managed to sell nearly 20.3 million iPhones from April to June. RIM, on the other hand, only managed to sell out 13.2 million BlackBerrys from March to May.