RIM set to axe 2,000 jobs and review management
Tuesday 26 July 2011
The beleaguered smartphone giant Research in Motion is to slash its workforce by over 10 per cent as it kicks off a company-wide cost-cutting drive.
The Canadian group first announced plans to reduce costs last month, agreeing at the same time it agreed to review its management structure. This followed disappointing sales numbers and product delays which forced the company to warn on profits.
RIM yesterday revealed 2,000 employees would be axed, bringing its global workforce to around 17,000. The company said it would inform those employees affected this week.
Carolina Milanesi, an analyst at Garter, said: "It is normal behaviour when times are tough to see where you can cut; all of the telecoms companies that have been having a difficult time have gone through this."
RIM said the job cuts was a "prudent and necessary step for the long- term success of the company", adding that the workforce had nearly quadrupled as the company expanded rapidly over the last five years alone.
Geoff Blaber, an analyst at CCS Insight, said: "RIM is having a difficult time. It is a small company that has grown extraordinarily quickly. While the cuts are slightly bigger than expected, it is not on the scale of a company like Nokia."
The Finnish group said it would cut 7,000 jobs in April as part of a move to cut its operating costs by €1bn (£882m).
RIM also announced that chief operating officer Don Morrison, who is currently on medical leave, will retire from the company after more than 10 years. The group will keep its dual chief executive roles for now, but the situation is under review.
Mr Blaber said RIM was strong in the UK, but faced pressure in North America.
"A lot of the negative sentiment is driven out of North America, but the fear is that with any more issues and its performance in other regions may begin to suffer," Mr Blaber said.
- 1 Nigel Farage: Me vs Russell Brand on Question Time – he's got the chest hair but where are his ideas?
- 2 Harry Potter fans can apply to the Hogwarts-inspired College of Wizardry
- 3 Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
- 4 Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
- 5 Orange Wednesdays are no more
Weather bomb in pictures: Storms cuts power for tens of thousands – and snow is on the way
Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
Russell Brand was rendered speechless on Question Time by this man
Fury at Airbus after it hints the super-jumbo may be mothballed
Disgruntled RBS worker writes hilarious open letter to Russell Brand after anti-capitalist publicity stunt leaves him hungry
Nigel Farage defends Kerry Smith 'ch***y' comment: 'If you are going for a Chinese, what do you say you’re going for?'
Nigel Farage's approval rating hits 'record low' as popularity suffers in wake of Ukip sex scandal
Pakistan school attack live: Taliban kill at least 132 children in 'horrifying' massacre
Sony hack: Angelina Jolie branded 'seriously out of her mind' in further embarrassing leaked email saga
Panic Saturday: 13 million Britons spend £1.2bn – while 13 million others across the country live in poverty unable to afford food
iJobs Money & Business
$200 - $350 per annum: Carlton Senior Appointments: Managing Producer Office...
$125 - $225 per annum: Carlton Senior Appointments: San Fran - Investment Advi...
Up to £70,000 per annum + benefits: Sheridan Maine: Are you a qualified accoun...
Up to £65,000 per annum + benefits: Sheridan Maine: Are you a qualified accoun...