RIM Stock Drops As Reports Of Layoff Notices Emerge
THE CANADIAN PRESS -- TORONTO - Research In Motion shares closed down another six per cent Monday after the BlackBerry maker took a major drubbing on the Toronto stock market last week.
The Waterloo, Ont.,-based company closed down $1.83 at $25.41 on the Toronto Stock Exchange Monday.
RIM shares fell nearly 20 per cent on Friday as investors responded to a rash of analyst pessimism about the company's prospects.
On Thursday, Research In Motion (TSX:RIM) announced plans to cut jobs as it works to roll out new smartphones and updated tablets in a bid to stay competitive against mobile computing behemoth Apple (Nasdaq:AAPL) and the emerging threat of products that run on Google's Android platform.
A Waterloo, Ont., radio station said Monday that as many as 200 employees received layoff notices earlier in the day.
570 News said that many of the jobs were thought to be in manufacturing.
The company had already cut its profit forecasts for this year. The rollout of its PlayBook tablet came with little fanfare and lukewarm reviews in April, on the heels of the much-publicized launch of Apple's iPad 2 -- which flew off store shelves and has remained one of the hottest tech gadgets on the global market.
Until Friday's dismal performance, RIM shares hadn't been below $30 on a split-adjusted basis since August 2006.