Research In Motion Could Fire 90% of Employees: Morgan Stanley

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Research In Motion Could Fire 90% of Employees: Morgan Stanley

It’s no secret that Blackberry maker Research In Motion Limited (NYSE:RIMM) (TSE:RIM) is failing as a company and one analyst from Morgan Stanley, Ehud Gelblum predicts that it’s going to get worse.

Gelblum is predicting that the next nine months for RIM will be nothing but more financial loss. He expects that in August over several factors including older devices that are never updated and the delay of BlackBerry 10 launch. It also doesn’t help that their smartphone market is performing poorly in a market that favors  sleeker and more innovative devices from Google and Apple.

If Blackberry 10 devices are delayed any further, it’s probably going to hurt the company even more. Wall Street’s current estimations of the average worth of RIM could be even further off.  The analyst predict that RIM will accrue $3 billion in quarterly revenue over the next two years but Gelblum thinks that number will be half.

Gelblum elaborated even further in a statement “Market share loss accelerates in FY14 as risks we have flagged earlier intensify, namely 1) competition increases in emerging markets due to increased availability and lower price points of Android smartphones and 2) BB10 misses back to school and the product flops, particularly because it has no keyboard which we believe is a key feature of Blackberries that is keeping the existing Blackberry faithful strong.”

He ended his statement with a dire outlook for he once-popular smartphone maker: RIM may have to let 90% of their employers go in order to break even.

This is nothing new as we’ve known that the future for RIM has been bleak for a few years now.  What is surprising is that the company is still in operation. It’s really only a matter of time until RIM is acquired by another company or goes out of business. Let’s hope that another successful company will take them under their wings and give them a new lease on life.

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