RIM restructuring to shed 2,000 jobs, reports say

28 May 2012

RIM's headquarters in Waterloo, Ontario, Canada

BlackBerry maker Research in Motion (RIM) is to cut some 2,000 jobs worldwide as part of global restructuring plans, various reports have said.

Those plans could be implemented in the next couple of weeks, The Globe and Mail reported, citing sources close to the company.

AllThingsD also reported the job cuts from RIM’s current staff number of about 16,500.

RIM itself has said its policy is to not comment on rumours and speculation.

The company’s CEO, Thorsten Heins, did say in an earnings call in March that the company is focusing on driving excellence in efficiency and operating metrics.

It’s been a bumpy time for RIM lately. The company’s head of global sales Patrick Spence resigned last week, and former co-CEO Jim Balsillie, resigned as director on its board in March.

At the time, the company also reported its revenue for the fiscal fourth quarter was US$4.2bn, down 19pc since the previous quarter with a US$125m net loss.

IDC also recently reported that BlackBerry continued its downward trajectory, as demand for older BlackBerry devices decreased and the market awaits the official release of BB 10 smartphones later this year. In addition, many companies now permit users to bring their own smartphones, allowing competitor operating systems to take away from BlackBerry’s market share. Although RIM has not officially released BB 10, initial glimpses of the platform have shown improvement.