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RIM (RIMM) Takes 'Noah's Ark' Approach to Job Cuts...

June 20, 2012 7:31 AM EDT Send to a Friend
Doing it two-by-two, that is. Er, 10-by-10, in the case of RIM.

Following its recent fourth-quarter earnings miss and announcement it would explore alternatives, Research In Motion (Nasdaq: RIMM) is commencing more expected layoffs, doing so in an unusual way.

According to reports late Tuesday, the Waterloo, ON-based mobile device maker is trimming its workforce by groups as small as 10 each. The WSJ noted that cuts have come in its quality control, operations, and parts departments.

There's no reasoning why RIM is using such a technique for the cuts and doing so will delay RIM trimming its targeted number of positions in its quest to return to profitability. The only immediate reason would be that RIM is running pretty thin following about 2,000 cuts last year and any further cuts most be deliberated more fully.

Analysts believe RIM will work to cut another 2,000 jobs this year as it looks for $1 billion in savings by the end of 2012.

In addition to some recent executive departures, manufacturers have also been winding down operations, taking some one-time hits in the process.

Since hitting a 52-week high of $33.54 last September, RIM shares have kept below most moving averages (the 100-day SMA is been a bit of a ceiling for the stock), moving 68 percent lower to a close of $10.75 Tuesday. The stock is indicated for a higher open today.




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