RIM axes 2,000 jobs amid declining sales
25 Jul 2011
Research In Motion (RIM), the maker BlackBerry smartphone, today said that it is cutting 2,000 jobs or 10 per cent of its workforce as part of its previously announced plan to reduce costs amid declining sales.
The Walterloo, Ontario-based company said the cuts will reduce its headcount to about 17,000 and it will notify affected employees this week.
RIM said the job-cuts were focused on "eliminating redundancies and reallocating resources to focus on areas that offer the highest growth opportunities."
RIM said it would disclose further information on the financial impact of the cost cutting measures when it releases second-quarter results on 15 September 2011.
For several quarters, analysts and investors led by Northwest & Electric Investments had asked for an overhaul of the management, including changing the company's dual-chairman and CEO model.
But the company had reacted sharply last month, saying that the chairman Jim Balsillie and CEO Mike Laziridis are the right men to bring the company back on track.
