American financial juggernaut Morgan Stanley has come forth with some grim statistics about the ailing Canadian BlackBerry maker, Research In Motion.
According to the bank, RIM's fiscal year 2014 revenue is likely to be in the ballpark of $7 billion, far below the $12-billion range that most of Wall Street currently anticipates.
If the future is bleak, the present is no less gloomy. Morgan Stanley analyst Ehud Gelblum wrote in a research note to clients that RIM "is likely to significantly miss estimates" in its upcoming quarter.
Indeed, RIM is expected by Ehud to have such a bad year that the Waterloo company will be forced to continue its substantial layoffs. Already down to about 16,000 employees from a peak of 20,000, the analyst suggests that RIM will end up cutting more and more jobs until only 2,000 workers remain—yes, a 90% headcount slash. The idea from Ehud is that RIM goes from being a global mass supplier to a niche device maker.
RIM shares are down more than 7% today in trading.