Job cuts tipped at smartphone maker

06:01 am on 31 May 2012

The maker of the Blackberry smartphone has warned it will make a loss in its latest quarter and make significant job cuts.

Research In Motion also said it was hiring JPMorgan and RBC Capital Markets to help with a strategic review of the business.

Chief executive Thorsten Heins said there would be significant reductions in spending and headcount in some areas for the remainder of the fiscal year.

The BBC reports the Blackberry has lost ground as its clients have switched to iPhones or Android phones. RIM has also struggled to gain a foothold in the tablet market.

The company made a net profit of $US1.2 billion last financial year, down from $US3.4 billion in the previous year.

Shares fell 10% in after-hours trading on Wednesday.