July 25, 2011
RIM Announces Job Cuts
Research In Motion (RIM), the creator of the BlackBerry, said on Monday that it plans to cut 2,000 jobs as it tries to compete against smartphone makers Apple Inc. and Google Inc.
RIM said in a statement that the reductions, across all functions, are part of a plan to "focus on areas that offer the highest growth possible."
RIM predicted last month that quarterly revenue may drop for the first time in nine years.
The company also announced that its chief operating office (COO) Don Morrison is planning on retiring. Thorsten Heins, currently COO of products at RIM, will replace Morrison.
RIM warned in April that its profits would be low due to reduced shipments of its Blackberry devices.
The company has already announced a cost-cutting program, which includes job cuts, but had not given full details.
RIM said it hopes the changes will increase the speed at which it can bring products to market.
RIM said the job cuts are a "prudent and necessary step" for its long-term success.
Jefferies & Co analyst Peter Misek told Reuters "I think this is obviously realigning the cost structure to a new growth, or sales, reality."
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