RIM to cut 2000 jobs

 

Second major restructure this year.

BlackBerry maker Research In Motion is preparing for a major restructure that will see it eliminate at least 2000 jobs worldwide, the Globe and Mail reported on Saturday.

The Canadian newspaper, citing several people close to the company, reported that the next round of layoffs would commence from June 1, a day before the company's first quarter ends. Some expect the announcement even earlier.

One source close to the company told Reuters the impending layoffs could hit as many as 6000 people and affect RIM's legal, marketing, sales, operations, and human resources divisions.

"The strategic question is: are you accelerating into a better future or shrinking to a niche operation," said the source, who declined to be identified due to the sensitive nature of the job cuts.

A RIM spokeswoman contacted by Reuters declined to comment on the report but pointed to comments recently made by chief executive Thorsten Heins and chief financial officer Brian Bidulka about plans to streamline operations and save $1 billion in the fiscal year.

The spokeswoman said RIM now has about 16,500 staff globally. This is down from a peak of around 20,000.

RIM reported a fourth-quarter loss in March, when the new CEO announced the initial steps in a strategic overhaul. Heins took over from longtime co-CEOs Mike Lazaridis and Jim Balsillie in January.

Once the dominant player in the wireless e-mail sector, RIM has lost market share due to fierce competition from Apple's iPhone and phones running on Google's Android software.

RIM has already been through one round of restructuring. Last July it announced plans to cut about 11 percent of its workforce, or 2000 jobs.

A string of high-level employees have departed RIM recently, including global head of sales Patrick Spence, who was set to take a senior job at audio company Sonos.

Several sources close to the company told Reuters that RIM had been letting more junior staff go for several months in what has come to be known internally as 'Goodbye Thursdays', because the cuts typically occurred on that day of the week.

The job cuts have failed to boost the company's stock. On Thursday RIM shares hit a multi-year low of C$10.87 on the Toronto Stock Exchange. The stock changed hands for more than C$150 in 2008.

(Additional reporting by Jeffrey Hodgson; editing by Christopher Wilson)


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