Quanta has cut back its PlayBook production lines after a substantial drop in orders, according to sources in Taiwan.
Digitimes reports that Quanta, the company manufacturing the PlayBook tablet for RIM, has offered "preferential compensation to lay off about 1,000 workers".
Quanta confirmed the layoffs but wouldn't comment on individual clients, the report states.
RIM had forecast four to five million sales of its PlayBook tablet in 2011, though only 700,000 were shipped in the first half of 2011.
The PlayBook has received criticism from many industry commentators for lacking a native email client, something which will be remedied in a forthcoming update. The Android App Player should also debut in the upcoming PlayBook update, which will allow users to run applications designed for Google's Android OS.
However, with Apple's iPad currently so dominant in the tablet market, it is difficult to see the PlayBook making any significant inroads, despite the update.