Beleaguered RIM misses on revenue, announces layoffs

“Despite lowering its forecasts for the quarter in late April, Research in Motion announced first-quarter fiscal 2012 earnings today and still missed its revenue target by hundreds of millions of dollars,” Erica Ogg reports for CNET. “The mobile device maker also announced it will start layoffs during the second quarter.”

MacDailyNews Take: This is what failure looks like.

“The company said in a press release that it expects layoffs to begin ‘in the second quarter with the benefits impacting results primarily in Q3 and beyond,'” Ogg reports. “RIM did not give any target for the number of staff reductions.”

Ogg reports, “For the next quarter, RIM is forecasting revenue between $4.2 billion and $4.8 billion, and has lowered its outlook for revenue for the full fiscal year. Now RIM is projecting earnings per share to be between $5.25 and $6.00, excluding any one-time charges or share repurchases.”

Read more in the full article here.

[Thanks to MacDailyNews Reader “Dave” for the heads up.]

MacDailyNews Take: DCW.

Related articles:
O2 rejects RIM’s BlackBerry PlayBook; won’t sell in UK due to end user issues – June 16, 2011
Even RIM doesn’t want their Playbook tablet – June 9, 2011
RIM half-CEO’s biggest fear comes to fruition: Apple unveils iMessage app and service – June 6, 2011
As RIM flounders, investors talk of replacing half-CEOs – May 31, 2011

26 Comments

  1. Layoffs are terrible. Too bad for the people working there that their leaders are incompetent. Instead of working hard to compete, they were busy talking smack, bragging about their existing POS and dismissing Apple as a competitor. It’s their CEO’s that should be laid off. Their already rich, they can afford to take the time off.

    1. This is why I read Dilbert.

      Yeah, the managers complain about the deadwood employees that ruin the bunch. But it’s the deadwood executives who dig a company’s grave.

    2. The two CEOs’ renumeration could probably cover the gains made by the layoffs. Get rid of the two headed monster and promote some go getter from within.

      Or sell the whole mess to Ballmer for 5 times what it’s worth and pension off all of the employees.

    1. “Success is Google Android”
      REALLY?
      Do you mean success for Google who makes no direct money from the sale of an Android phone.

      Or do you mean the Android manufacturers whose profit on smartphones combined is less than Apple’s smart phone profit.

      So yes having Android as a wannabe competitor, probably contributes to Apple’s success in iPhone sales.

  2. I predicted only a few weeks ago that RIM would be one of the handset makers that would suffer greatly because of agile new competitors. I just witnessed this in a company that switched cellphone services and offered a choice between iPhones and Blackberries. Almost everyone choose the iPhone.

    I suspect that the iPhone/iPad juggernaught will continue to win converts in the corporate space. Even my Windows loving friends are expecting that the iPad is the next gen of broad based computing devices.

  3. Don’t you just love the corporate world? The “top” dogs sleep through the revolution of the mobile market, blustering and spouting arrogant dismissal of their competitors, and now the small guys and girls who probably work their butts off in overtime pay the price. It’s a shitty world these days.

  4. Bone headed empty suits in charge as usual do the only thing they know how to do to temporally boost the stock prIce. The problem with layoffs is that they only help for a quarter or so then after that the company’s decline is accelerated by the loss of the people who actually do the work as opposed to the bone headed empty suits in charge.

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