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Significant lay-offs planned at RIM

Monday June 25th 2012

Research in Motion, the struggling manufacturer of BlackBerry, has started a series of redundancies that could see it lay off around 6,000 employees as part of restructuring plans it hopes will save around $1 billion (£637 million) this year.

Following the announcement in May that it would be making "significant lay-offs", Research in Motion, based in Ontario, Canada, said it has now "reduced some positions as part of its programme and may continue to do so as the company methodically works through a review of the business".

The company is facing financial difficulties because consumers, mainly in North America, are switching from BlackBerrys to iPhones and Android phones just as the firm is preparing to launch the new BlackBerry 10 operating system later this year.

Research in Motion, which also cut 2,000 jobs in July last year, said it will announce the number of redundancies it has made with its quarterly financial results, released on June 28. The company had approximately 16,500 employees in May.

Peter Misek, an analyst at Jefferies, said that Research in Motion's income will not cover its costs and he expects the company to make around 6,000 redundancies as it needs to be flexible when it releases the new BlackBerry 10 phones.

Copyright Press Association 2012

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