ST. MARTINS, N.B. - Finance Minister Jim Flaherty says Research In Motion is an important company for Canada but suggests it won't get a bailout from the federal government.
RIM shares took a beating this week after the Waterloo, Ont.-based company announced Tuesday it hired two outside firms to advise on its troubled business and financial performance.
The company also projected an operating loss in the current quarter and warned it will cut staff throughout the year.
Amid fresh speculation that RIM (TSX:RIM) is a takeover target, Flaherty fielded questions today in St. Martins, N.B. about whether the Tories will bail out the troubled tech company.
Flaherty recognized RIM's leading role in research, development and innovation in Canada but stressed it needs to reorganize itself.
The minister says that's something the government expects RIM's leaders to do on their own.
When asked if he's willing to see the company become foreign owned, Flaherty said he wouldn't speculate and noted the government hasn't been "asked to review any proposal for RIM under the Investment Canada Act."
On Wednesday, shares of the company tumbled seven per cent. They closed up four cents, or 0.4 per cent, to $10.70 on Thursday.
RIM chief executive Thorsten Heins has said there will be an unspecified number of jobs cut this year as the company aims to cut $1 billion in costs by the end of 2013.
Reports have suggested RIM will cut at least 2,000 jobs, or about 12 per cent of its global workforce. Some reports suggest the number may be closer to 5,000.
The company's new BlackBerry 10 platform, which will be on the market later this year, is seen as an important part of RIM's attempt to compete with Apple and devices using the Android operating system.
It is widely believed that the company's future is hinged on the success of its next line of smartphones, due sometime later this year.