RIM starts laying off employees

As we reported, when RIM recently announced Q1 earnings the company said it would be laying off an unspecified number of employees. This process started Tuesday as some RIM employees were given their layoff notice. The company employs 17,500  people around the world including 9,000 in the Waterloo, Canada area.

RIM's stock has dropped 27% since the earnings announcement. Over the last 52 weeks, the stock has been as high as $70 and as low as $25.82. One of the major problems facing the BlackBerry maker is that the phone RIM is counting on to compete with Apple and Android, the BlackBerry Bold 9900/9930, is now set for September. With no new handsets expected out this summer, RIM needs to balance payroll with revenue which is what the layoffs are trying to accomplish. There is no word on when-or even if-some of the laid off workers will be returning to RIM.

source: Reuters