RIM Could Lose 90% of Its Employees, Morgan Stanley Analyst Forecasts

Posted by Techvibes NewsDesk

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.

Company:
BlackBerry
Website:
http://www.blackberry.com
Location:
Waterloo, Ontario, Canada

Research In Motion (RIM), a global leader in wireless innovation, revolutionized the mobile industry with the introduction of the BlackBerry solution in 1999. Since then, BlackBerry products and services have continued to change the way millions of people around the world stay connected. With the launch of BlackBerry 10, we have re-designed, re-engineered and re-invented BlackBerry. Not only did we introduce a... more


blog comments powered by Disqus

Techvibes NewsDesk

Techvibes NewsDesk

Techvibes is Canada's leading technology media property.Founded in 2002, Techvibes covers technology and business news that impacts Canadians. We combine breaking local news with international coverage to deliver a unique balance of insight and information. The Techvibes Newsdesk covers a broad beat and publishes general news stories. If you have a story you would like covered, email... more



Who's Hiring



Recent Comments

Powered by Disqus