Research In Motion cuts workforce by 10%

Research In Motion (RIM) announced yesterday that it would be streamlining its operations, despite reaching a number of...

Research In Motion (RIM) announced yesterday that it would be streamlining its operations, despite reaching a number of high-profile licensing agreements last week.

The company said it would reduce its workforce by approximately 10% and decrease its discretionary spending.

"Following five years of rapid organisational growth and investment that allowed RIM to capitalise on its innovation and entrench its position in the wireless enterprise sector, we are ready to address the expanding 2.5G wireless market opportunity with proven technologies, global partnerships and strong business momentum," said Jim Balsillie, chairman and co-chief executive officer at RIM.

"In order to solidify our position and achieve our financial targets, we are moving ahead with a difficult, yet strategically important, decision to tighten operational efficiencies and adjust our current staffing level. We believe this streamlining will prove to be a prudent move for RIM in both the near-term and the long-term."

The company last week signed licensing agreements for its keyboard technology with both Handspring and Palm. It also announced a licensing deal with Nokia for its wireless e-mail software.

RIM is most recognised for its BlackBerry software, which supports enterprise requirements such as security, back-end integration and push-based wireless applications.

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