RIM to cut external manufacturing, outsource global repair services

Research In Motion (RIM) CEO, Thorsten Heins today told shareholders that the BlackBerry maker was cutting down its external manufacturing factories from 10 to three as a part of its plans to save money. The company is also outsourcing its global repair services, according to the announcement made during the annual meeting of shareholders. Reports of RIM parting ways with its long-time contract manufacturer partner Celestica appeared in the press last month.
RIM, which reported its first operating loss in eight years last quarter is looking to cut costs by $1 billion by end of financial year 2013 even as it faces a slowdown in sales and a delay in launching its BlackBerry 10 platform on which the company has pinned hopes to rescue itself from the death spiral it finds itself in currently. RIM will also lay off about 5,000 employees globally, or just about a third of its total workforce.
Heins had earlier announced that the company had hired RBC and JP Morgan to advise the management on various options that could be available to the company. At that moment, Heins had mentioned partnerships, licensing opportunities and alternative business models as the options the company could consider.