RIM to sell jet

By Allie Coyne on Jul 11, 2012 9:20 AM
Filed under Mobility

Needs more cash.

BlackBerry maker RIM is looking to offload one of its two private jets as part of an ongoing effort to cut $US1 billion in operating costs.

The news comes mere weeks after RIM unveiled plans to cut 30 percent -- or 5000 positions -- from its global workforce, instead of a previously announced 11 percent.

RIM also recently pushed back the launch of its much-hyped BlackBerry 10 operating system from late 2012 to 2013, claiming integration of new features and a huge volume of code had proven more time consuming than anticipated.

The BlackBerry maker is now reportedly hoping to fetch up to $US7 million from the jet sale, to contribute to its $US1 billion savings target.

Its nine-passenger Dassault Aviation SA (DSY) F50EX is currently up for sale, with a 14 person Dassault F900EX still remaining, reports Bloomberg.

“We’re looking at options with both our aircraft costs and finding ways to reduce our travel while still making sure we keep in close contact with our partners around the world,” RIM told Bloomberg.

RIM shares dropped 4.6 percent to $US7.44 immediately following the news.

A difficult year

RIM reported a massive $US2.2 billion ($A2.1 billion) drop in net profit for its 2012 financial year. It is reportedly considering selling off its struggling mobile business.

CEO Thorsten Heins has blamed the BYOD trend for threatening RIM’s traditional enterprise smartphone user base, and indicated RIM would undertake a “substantial change” in focus to regain some of its lost territory in this crucial market.

"The impression I had after two days as CEO is very different from the impression - not the impression, the facts - I discovered after being here for 10 weeks as CEO," Heins said.

"I am convinced that substantial change is what we need."

RIM's 5000 job cuts were announced late last month, with staff across its legal, marketing, sales, operations and human resources divisions the hardest hit.

The major restructure is the second for the company in a year. RIM last July announced it would cut 11 percent, or 2000 jobs, from its global workforce.

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