BlackBerry maker RIM to cut 2,000 jobs worldwide

By on July 25, 2011, 9:59 AM

Research In Motion has announced plans to cut 2,000 jobs, or about a tenth of its workforce, as part of a previously announced cost-cutting effort. The move comes as the company's management is facing harsh criticism from anonymous employees and industry analysts following its latest quarterly results, which were marked by a slowdown in sales and delayed products.

The reductions will affect all functions accross the company and are part of a plan to "focus on areas that offer the highest growth opportunities." Affected employees in the U.S. and certain other countries will be notified this week, while people getting the axe in the rest of the world will be notified according to local laws and regulations. The company added that it will have a global workforce of about 17,000 employees following the job cuts.

Charges associated with the job cuts such as severance packages aren't included in RIM's forecasts for the current quarter and fiscal year; those details will be available when it reports fiscal second-quarter results in September.

The company also announced new responsibilities for its top management "to create greater alignment of the organization." The most notable change was the retirement of chief operating officer Don Morrison, who is on medical leave, making way for the COO of products Thorsten Heins to take on an expanded role including products and sales. RIM's much criticized co-CEO model, headed by Jim Balsillie and Mike Laziridis, will apparently remain unchanged.




User Comments: 5

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Archean Archean, TechSpot Paladin, said:

Even after these cuts, I am not too sure about RIM's long term future, I think just like Nokia, they are in hot waters, and need a major shift in strategy + focus on innovation to stay relevant, otherwise, they are going to end up like dinosaurs.

Guest said:

Hopefully these people will find replacement jobs. Not a pleasant situation to be in, best of luck of all of these people.

aj_the_kidd said:

Archean said:

Even after these cuts, I am not too sure about RIM's long term future, I think just like Nokia, they are in hot waters, and need a major shift in strategy + focus on innovation to stay relevant, otherwise, they are going to end up like dinosaurs.

Nokia still dominates in Europe and Asia, so their future is somewhat brighter then RIM. Considering what RIM has brought out recently, its hard to see them ever gaining back what they lost.

DokkRokken said:

It's sad to see a bulwark of Canadian industry and technology take a beating. Here's hoping their upcoming products fare much better.

Guest said:

Luckily there is a market outside the US where buyers are not obsessed with crApple nonsense.

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