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NASDAQ:RIMM – Blackberry Maker RIM Cutting 2000 Jobs, Stock Plummets

nasdaq rimm stock tumblesRIM, the maker of Blackberry and the Playbook tablet, announced major layoffs today as it struggles to compete against the iPhone and Android OS.  This announcement has sent the stock tumbling on the NASDAQ.  RIM shares (NASDAQ:RIMM) are down right now -0.91 (-3.26%) at 27.00.

Blackberry maker RIM continues to struggle to keep up in the fast moving smartphone space.  The traditional “Blackberry” phone model is quickly being replaced by app heavy, touch display smartphones such as the iPhone and Android smartphones.  And despite the changes in the mobile phone marketplace since 2007, RIM seems to have failed to make the necessary changes to the product design to keep up with customer demand.

Another area where RIM is seriously lacking is in the developer space – meaning Blackberry doesn’t have a substantial apps marketplace for their devices.  The Blackberry Playbook is their attempt to enter the tablet market to compete with the iPad, but instead of focusing on their own apps marketplace, they’ve attempted to incorporate the Android marketplace.  Something that is not working out well for them.

So with all of this, RIM is now having to cut 2,000 jobs, or 10% of their workforce, as they struggle to maintain profitability.  Customers are simply moving away from Blackberry devices and purchasing Apple’s iPhone and Android smartphones instead.

via Gaurdian


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