Blackberry-maker RIM axes 2,000 jobs to cut costs

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Blackberry-maker RIM axes 2,000 jobs to cut costs

Jenny Williams

Blackberry-maker Research in Motion (RIM) has announced plans to reduce its global workforce by 2,000 people as part of a cost-cutting exercise - putting over 10% of its staff at risk.

Some affected employees will be notified this week with the remainder being told at "a later date". RIM said its global workforce will total 17,000 after the reductions.

The company said the job cuts are intended to streamline RIM's operations to prepare for future growth.

"The workforce reduction is believed to be a prudent and necessary step for the long-term success of the company and it follows an extended period of rapid growth within the company whereby the workforce had nearly quadrupled in the last five years alone," said RIM in a statement.

The company announced plans to make an unspecified number of job cuts in June 2011. RIM said further details will be communicated in its fiscal second quarter results in September 2011.

In a re-organisation of senior management, Robin Bienfait will maintain her position as RIM's CIO, including Blackberry operations, customer service and the corporate IT function. Bienfait will take on responsibility for the customer service unit for enterprise customers.

The company confirmed David Yach, RIM's CTO of software, will continue to focus on current and future software platforms, as well as the surrounding developer and application ecosystem.

Shares in Research in Motion fell up to 17% in June 2011 after the company announced its quarterly revenue may drop due to product delays.

According to the revised outlook, RIM's revenue will be $4.2bn to $4.8bn in the second quarter, below average analyst estimate of $5.47bn.

RIM recalled around 1,000 Playbook tablets sent out with faulty operating systems in May 2011.


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