BlackBerry maker RIM is shedding jobs in a desperate bid to stop its business going south.
Click to enlarge |
Research In Motion announced details of cost cutting program today, including the chop of 2,000 jobs globally “across all functions.”
The plan first flagged to investors on June 16th last, “is focused on eliminating redundancies and reallocating resources to focus on areas that offer the highest growth opportunities,” it said.
All affected staff in North America and “certain” other countries will be notified this week, although the maker failed to specify which precise locations would be impacted.
Other global workforce reductions will occur at a later date subject to local laws and regulations and “all impacted employees will receive severance packages and outplacement support.”
The dramatic cuts are “a prudent and necessary step for the long term success of the company” and followed a period of rapid growth where headcount had nearly quadrupled in five years.
Following the reductions, RIM’s global workforce is expected to be approximately 17,000. Other changes will be communicated in Q2 results, due out on September 15.
The Canadian giant hopes “to streamline operations in order to better position the company for future growth and profitability,”it said in a statement.
The announcement comes as the former smartphone favourite has struggled against newer rivals like Apple iPhone and Android handsets from the likes of HTC and Samsung.
Its revenue for first quarter of fiscal 2012 (March – May) fell 12% to $4.9 billion, although up on last year’s figure, and sold 13.2 million handsets and half a million Playbook tabs, proving it is still making a mark.
However, with Apple selling just over 20 million handsets and Samsung tipped to do the same, BlackBerry has its work cut out.
And a shake up at senior management was also the order of the day over at BlackBerry’s Ontario based offices.
Top of the list is Chief Operating Officer, Don Morrison, currently on temporary medical leave, who is to retire from his position after 11 years in the company.
Thorsten Heins is also taking on the expanded role of COO, Product and Sales.
Several other moves in senior level was also announced. Patrick Spence is taking on the role of Managing Director, Global Sales and Regional Marketing, moving from overseeing sales and country operations for RIM.
All RIM’s product engineering functions, including both hardware and software teams, are also to be consolidated to achieve greater efficiencies and “help to accelerate new product introductions in the future.”
