Corporate | | Blackberry maker RIM to cut 2,000 jobs worldwide | | TT Correspondent | | 26 Jul 2011 | | |
Research In Motion (RIM) will slash around 2,000 jobs worldwide, as the Blackberry maker embarks on cost-cutting to bolster its position in the highly competitive smartphones market.
Amid tough market conditions and stiff competition, RIM is the latest entity to announce layoffs after similar moves by global players such as Nokia and Cisco.
"RIM is reducing its global workforce across all functions by approximately 2,000 employees... Following the completion of the workforce reduction, RIM's global workforce is expected to be approximately 17,000 people," the company said today.
It could not be immediately ascertained whether the job cuts would affect Indian operations.
However, sources said that India is a growing market for RIM and the company is hiring people here.
According to the company, an extended period of rapid growth saw its workforce nearly quadruple in the last 5 years.
"The workforce reduction is believed to be a prudent and necessary step for the long term success of the company," RIM said in a statement.
Well known for its Blackberry mobile e-mail devices, Canada-based RIM is grappling with stiff competition from players such as Apple as well as security issues in many countries including India.
Impacted employees in North America and "certain other countries" would be notified this week.
The remainder of the global workforce reductions would occur at a later date subject to local laws and regulations. "All impacted employees will receive severance packages and outplacement support," RIM added.
Meanwhile, in a management rejig, Thorsten Heins would become the COO (Product and Sales).
Patrick Spence would take the role of Managing Director, (Global Sales and Regional Marketing). He had been overseeing sales and country operations for RIM in various regions including North America, Asia Pacific and EMEA.
RIM's CFO Brian Bidulka along with Jim Rowan, who would take the expanded role of COO (Operations), would oversee the firm's cost optimisation programme. |
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