MONTREAL: BlackBerry maker Research in Motion offered up a grim quarterly report on Thursday showing deepening losses and worsening sales, as it announced 5,000 job cuts and a delay in its new smartphone platform.
The struggling Canadian firm said its loss in the quarter ending June 2 widened to $518 million. It delayed until early 2013 a new platform to help BlackBerry compete with Apple and other smartphone makers.
The report was worse than expected and sent RIM shares tumbling nearly 18 percent in after-hours trade to $7.44.
The company, which has been hammered in the rapidly changing market now dominated by makers of devices using Google’s Android software and Apple’s iPhone, said it would cut jobs to boost efficiency and save $1 billion in operating costs.
The move includes “a global workforce reduction of approximately 5,000 employees, which is expected to be completed by the end of fiscal 2013.” To make matters worse, the company said it was delaying its new BlackBerry 10 platform, which had been expected later this year in an effort to drive sales in the key holiday season.