Shares of Research in Motion took a dive Wednesday after the BlackBerry-maker confirmed the company has started to hand out pink slips in an effort to cut operating costs.

The Waterloo-Ont.-based company has not confirmed the number of employees being laid off, but says the dismissals are part of a plan to generate at least $1 billion in savings by the end of the 2013 fiscal year.

"RIM has reduced some positions as part of this program and may continue to do so as the company methodically works through a review of the business," reads a statement emailed to CTV Kitchener on Tuesday.

The news appeared to have a ripple effect on company shares, which dove 47 cents to $10.49 in trading on the Toronto Stock Exchange.

The struggling company warned earlier this year that there would be "significant" layoffs as it hired two outside firms to try to remedy its poor financial performance.

Reports suggested that RIM would cut at least 2,000 jobs, or about 12 per cent of its global workforce, but the company hasn't confirmed the rumours.

Troubles for the Canadian business appeared to peak in late March when RIM co-founder Jim Balsillie retired from the company's board of directors amid weak fourth-quarter results.

The former tech behemoth, whose smartphones had earned legions of self-proclaimed "CrackBerry" devotees, reported a loss of US$125 million, or 24 cents per share -- compared with a profit of $934 million or $1.78 per diluted share a year ago.

Revenue was $4.2 billion, down 19 per cent, from $5.6 billion for the same period a year earlier.

Combined with slowing sales and a perceived failure to innovate in the face of competition from companies such as Apple, it's unclear how RIM will move forward.

Back in March, RIM's new CEO and president Thorsten Heins told analysts the company would consider a sale if an offer came forward, but "it's not the main direction we are pursuing right now."

In regards to the recent layoffs, RIM has remained relatively quiet, saying further details will be provided in a business update on June 28.

RIM employs 16,500 people worldwide.