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UPDATE: RIM continues hiring for QNX in Ottawa amid job cuts

(Stock image)

(Stock image)

Published on June 29, 2012
Published on June 29, 2012
OBJ Staff  RSS Feed

Even as its parent company prepares to lay of thousands of workers, Ottawa’s QNX Software Systems appears to be adding to its headcount.

Topics :
Apple , National Bank , Waterloo , New York , U.S.

QNX's website lists dozens of positions available in fields including software development, infrastructure development, testing and engineering services.

The Ottawa company is responsible for building the Blackberry 10 operating system, which many think is RIM's only hope of survival.

Late Thursday, the Waterloo-based firm announced it would reduce its workforce by a third, or 5,000 employees, and delay the launch of the new operating system.

A spokesperson for RIM said individual markets or departments that are affected by the cuts will not be disclosed, but key programs for BlackBerry 10, customer support and BlackBerry service would not be impacted.

Media reports say the majority of job cuts will be in Waterloo.

RIM shares plummeted 20 per cent in mid-morning trading to $7.65, down $1.81 from its opening price.

The announcements came as a shock because the company had insisted it would release new phones by the end of this year.

The company, which reports in U.S. dollars, posted a loss of US$518 million or 99 cents per share for its latest quarter, steeply missing analyst expectations.

The results marked a decline from the profit of $695 million or $1.33 per share a year ago.

Chief executive Thorsten Heins told analysts on a conference call that he expects the company will face further pressure on its financial results over the next several quarters.

The new BlackBerry 10 operating system and phones have widely been considered a last-ditch effort to save the company, which has lost a significant portion of its marketshare to competitors like Apple's iPhone and devices using the Android operating system.

At least one analyst was not impressed with RIM's results last night.

"At this point there is a chance that we may never see a BB10 handset given RIM's track record," wrote National Bank analyst Kris Thompson in a note.

"RIM is intent on launching a 'distinct' smartphone platform; all we see at this point is an extinct platform. Are consumers and enterprises really going to wait for another platform? No!"

Thompson upgraded his shares to a "sector perform" on the basis that the company could be broken up and sold for $8 per share, based on its cash holdings and intellectual property.

- With a report from The Canadian Press

Comments

  • Username
    RIM Shareholder
    - June 29, 2012 at 16:05:25

    Maybe QNX should focus on getting BB10 out on time instead of the numerous delays by focus on BB10 and not cars, rear view mirrow, home appliances or whatever else 100's of miilion dollar in market cap lost due to this delay - how much $ did the home appliance deal bring in 100K? Someone tackle somebody

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