BlackBerry maker Research in Motion (RIM) is expected to cut between 2000 – 6000 jobs in the coming weeks, which could begin in the next few days. As part of the company’s “major restructuring” all employees, with the likely exception of BlackBerry 10 workers, are at risk of losing their jobs.
One source close to the company previously told Reuters that the layoffs could hit as many as 6,000 people and affect RIM‘s legal, marketing, sales, operations, and human resources divisions.
With approximately 16, 5000 employees worldwide, RIM will be cutting more than one third of its employees in the latest move. This is the second time in one year that RIM are making drastic cuts to its staff which have since failed to see a boost in stock which hit a multi-year low of $10.87 on the Toronto Stock Exchange, on Thursday.
After RIM‘s most recent quarterly earnings revealed that the company suffered a loss of $125 million, CEO Thorsten Heins suggested a much needed shift for the smartphone maker saying that “œIt is now very clear to me that substantial change is what RIM needs“ while also looking to save $1 billion by the end of 2013.
With the impending staff cuts, Reuters also reported a source noting that “œThe strategic question is: are you accelerating into a better future or shrinking to a niche operation?“ Perhaps a venture into a more niche operation is the substantial change that Heins is referring to.
In addition to reported financial loses and decreased market share, reports suggest that BlackBerry’s single focus on delivering corporate services like BB Mail and BB Messenger on fixed contract while neglecting innovation is a significant contributing factor to its poor performance. While new Android smartphones and iPhones continue to enter into the market, RIM has not released a new phone in years.
Sources have suggested that BlackBerry will be releasing BlackBerry 10 phones in October.
Source: ZDnet
