BlackBerry Maker Posts Huge Loss, Delays New Phone
RIM slashing 5K jobs as 'death spiral' continues
By Rob Quinn, Newser Staff
Posted Jun 28, 2012 10:48 PM CDT
The flags at Research In Motion headquarters in Waterloo, Ontario may be at half-mast before the year is out.   (Getty Images)

(Newser) – BlackBerry maker Research In Motion's freefall is continuing. The Canadian company's shares plunged 15% after it posted a $518 million third-quarter loss and announced that its new BlackBerry 10 smartphone had been delayed until next year, reports the Wall Street Journal. The company says it is cutting 5,000 jobs—nearly a third of its workforce—and experts believe it might not survive long enough to release the new smartphone. CEO Thorsten Heins says the delay is due to difficulties with new features on the much-hyped phone and the company is in the midst of a "strategic review."

"They had one hope—one—and that was to make BB10 the greatest thing since sliced bread and get it out on time. Clearly, they have failed," the chief of a Toronto software firm tells the Globe and Mail. "There’s just no way now to pull out of the death spiral,” he says. “With stiff competition and a complete lack of marketplace trust, zombie Steve Jobs couldn't fix RIM." Where did it all go wrong for the company? Analysts blame years of resistance to innovation and operating with two CEOs.

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Showing 3 of 5 comments
InferiorToYou
Jun 29, 2012 8:12 AM CDT
Nortel will buy them out.
jennylyon
Jun 29, 2012 12:42 AM CDT
Expand your mind and expand your knowledge. There are still jobs out there. Go after a degree in the field of your choice and on demand. Find your field at High Speed Universities websites to know which are on demand and suitable for you.
atonausar
Jun 28, 2012 11:09 PM CDT
To steal from a witty post: "I guess that means no more RIM JOBS!"