Quanta Computer, manufacturer of the BlackBerry PlayBook, plans to layoff 1,000 employees in the Taiwan plant that was contracted to produce the tablet, according to a new report.
The tablet maker confirmed the job cuts, saying it will offer preferential compensation to the ousted employees, though Quanta would not offer further details. The factory was based in Taiwan rather than mainland China to avoid knockoffs, claims Digitimes.
RIM originally estimated the PlayBook to sell 4-5 million units, though the company only shipped 200,000 last quarter. It seems Quanta decided to cut its losses and lighten production of the 7-inch slate.
While RIM hasn’t announced plans to discontinue the device, the company is reportedly sitting on a stock of around 800,000 unsold PlayBooks, according to a report in the Guardian. Yet, this isn’t the first bad news the PlayBook has brought the company. In August, Sprint canceled its order for a 4G WiMAX version of the tablet. And back in June, rumors indicated the Canadian-based BlackBerry maker abandoned plans for a 10-inch PlayBook, opting to focus on its QNX operated smartphones.