RIM sheds jobs to save $1bn in operating costs

21 Jun 2012

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RIM's headquarters in Waterloo, Ontario, Canada

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Job cuts are part of BlackBerry maker Research In Motion (RIM)’s plan to save $1bn in operating costs by the end of its 2013 fiscal year, the company said yesterday.

“RIM has reduced some positions as part of this programme and may continue to do so as the company methodically works through a review of the business,” the company said in a statement.

RIM did not provide specific numbers regarding the job cuts, but previous reports have said RIM will cut 2,000 jobs from its global workforce of about 16,500 employees as part of global restructuring plans.

The company may well provide a business update on 28 June, when it reports its financial results from the first quarter. It has already said it expects an operating loss in the face of decreasing sales in North America and pricing pressure in international markets.

RIM is trying to regain a grip on market share with the release of a new range of phones based on the BlackBerry 10 operating system, which is scheduled to be released later this year.

Tina held senior editorial positions at daily newspapers in Ottawa and Toronto

editorial@siliconrepublic.com