BlackBerry maker, Research in Motion (RIM) is set to cut 2000 jobs, which amounts to 11 percent of its workforce as part of a cost-cutting exercise. Some of the employees will be notified this week, while the rest will be informed at ‘a later date’. After deductions, RIM’s global workforce will decrease to a total of 17,000. The company announced the cuts last month, saying they were ‘a prudent and necessary step’ for their long-term successes.
The Canadian company said the year had got off to a ‘challenging start’, with a reduction in the sales of its smartphones and mobile devices, delays in product introductions and a lacklustre opening for its new tablet, the BlackBerry PlayBook. To counter this, it said it would begin cutting jobs and re-allocating resources to focus on specific products.
RIM cuts down on 2000 jobs
According to RIM, by the way of these job cuts, they also intend to streamline their operations and prepare it for future growth. Besides, the senior management has also undergone restructuring with Thorsten Heins taking over the reins from Don Morrison for the expanded role of COO, Product and Sales.
After recalling around 1000 PlayBook tablets, which were sent out with faulty operating systems in May 2011, this seems like another blow to RIM’s fast escaping stronghold in the global market.