RIM to exempt developers from job cuts

NEW DELHI, INDIA: Canadian Research In Motion's (RIM) is hoping that the launch of BlackBerry 10 OS will improve its prospects.

Plagued by shrinking market dominance with a loss of 90 per cent within just four years, the company is evidently taking a cue from smartphone giant Apple. In 1997, Apple with a loss of over $1 billion was inching towards bankruptcy, but its co-founder Steve Jobs steered the company through troubled waters with innovative OS.

Analyst Tarun Pathak says that on the same lines, RIM is banking heavily on its upcoming BlackBerry 10 platform. "Since 2008, RIM's share value has shrunk from $147 to $8 now, though the company maintains number 3 position in the Indian market," said Pathak.

With 15 per cent market share in India as of May 2012, Pathak said RIM has been fairly selling its newly-launched smartphones, despite the global turbulences.

However, the company is strategically reducing cost and planning workforce cut.

It is reportedly planning to sell one of its two nine passenger business jet planes- Dassault Aviation SA F50EX. RIM India spokesman Varghese Thomas said that they were exploring funding options through aircraft sales as well as trying to limit travel expense.

"We’re looking at options with both our aircraft costs and finding ways to reduce our travel while still making sure we keep in close contact with our partners around the world. It’s all part of the effort to find ways to reduce costs and drive efficiencies that Thorsten Heins (RIM CEO) has talked about," he said.

On job cuts, he said: "The company has announced the reduction of global workforce by approximately 5,000 over the course of the remaining fiscal year, but we have not specified the individual markets or departments that would be affected."

Though the mobility firm is cutting down 10 per cent of its workforce, Thomas says that their application developer community will remain intact and the company would continue to hire relevant individuals to facilitate BlackBerry 10 OS.

"We will continue to spend and hire in key areas such as those associated with the launch of BlackBerry 10, and those tied with the growth of our application developer community," he said.

RIM is highly banking on corporate customers and is optimistic over the twice delayed BlackBerry 10 platform, which it now said would be introduced in early 2013.