Research In Motion

(RIMM)

is preparing to slash 10% of its workforce, or about 220 employees, to meet profitability goals, the company said.

The Waterloo, Ontario-based maker of the Blackberry handheld device is anticipating a pretax charge of $8 million to $9 million in its fiscal third quarter. But it expects to realize $20 million to $25 million in annual cost savings as a result of the cutbacks, starting next year.

"In order to solidify our position and achieve our financial targets, we are moving ahead with a difficult, yet strategically important, decision to tighten operational efficiencies and adjust our current staffing level. We believe this streamlining will prove to be a prudent move for RIM in both the near term and the long term," said Chief Executive Jim Balsillie in a statement.

The company logged a net loss of $14.3 million, or 18 cents a share, in the quarter ending August. In October, it cut its sales guidance for the fiscal third quarter ending in November, saying sales would remain flat with the second quarter at $73.4 million.

The sobering announcement comes a day after the company's shares were boosted nearly 30% by news of a licensing deal with handset giant

Nokia

(NOK) - Get Report

for its corporate email software.

Research in Motion shares were down 73 cents, or 4.7%, at $14.89 in Tuesday afternoon trading.

Our premium content on RealMoney.com is FREE for TODAY ONLY, Tuesday, Nov. 12!

Click here

to check it out.