Handheld device maker Research In Motion Ltd. announced plans Tuesday to cut 10 per cent of its global workforce, about 220 jobs, to reduce costs and manage a profit.
"These measures represent an important step toward the company achieving its goal of profitability," the company said in statement.
Waterloo-based RIM said the cuts will incur a pre-tax charge against its current third quarter of up to US$9 million, but result in long-term savings of $20 million to $25 million a year.
The savings will fully realized by the fiscal first quarter, the company said.
"In order to solidify our position and achieve our financial targets, we are moving ahead with a difficult, yet strategically important, decision to tighten operational efficiencies and adjust our current staffing level," chairman and CEO officer Jim Balsillie said in a statement.
The cuts follow the company's warning last month against its 2003 results, citing delays in the release of new versions of its flagship BlackBerry e-mail device.
The company expects sales for fiscal 2003, ending in February, of $300 million to $315 million, down from June's guidance of $350 million to $375 million.
"These measures represent an important step toward the company achieving its goal of profitability," the company said in statement.
Waterloo-based RIM said the cuts will incur a pre-tax charge against its current third quarter of up to US$9 million, but result in long-term savings of $20 million to $25 million a year.
The savings will fully realized by the fiscal first quarter, the company said.
"In order to solidify our position and achieve our financial targets, we are moving ahead with a difficult, yet strategically important, decision to tighten operational efficiencies and adjust our current staffing level," chairman and CEO officer Jim Balsillie said in a statement.
The cuts follow the company's warning last month against its 2003 results, citing delays in the release of new versions of its flagship BlackBerry e-mail device.
The company expects sales for fiscal 2003, ending in February, of $300 million to $315 million, down from June's guidance of $350 million to $375 million.
